From last night's Midas:

From a technical standpoint this morning’s dramatic rally is extremely significant for the big picture…

*Gold held $1185 numerous times, broke down below that level, came back late yesterday and this morning to check it again. Upon the successful test, gold exploded in dramatic short order fashion. This tells us the breakdown was an engineered false one. From a technical point of view (which will not go unnoticed by traders), it gives the market a very strong underpinning which will encourage new buying.

*The fundamentals have remained strong throughout the Gold Cartel’s orchestrated takedown. The technicals are confirming that picture.

*Yesterday I made mention that it seemed silver was "washed out," with open interest so low. The very weak hands are gone. Meanwhile, the disappearing Comex inventory, and continued evidence of some silver shortages, are bullish factors for the market.

Silver has now bounced off the $17.60 to $17.69 level 4 or 5 times. That is some bottom, which can support a move to much higher levels.

Silver can also draw on the powerful copper action to gain new buyers. Yesterday copper closed up nine cents on a breakout out of a pronounced reverse head and shoulders pattern. It kept going today and was up 7 more cents in the morning with gold and silver at yesterday’s late Access Market trading levels.

Sold out silver:

http://stockcharts.com/h-sc/ui?s=$silver