Gold and silver are heading higher – much higher, but, we may have a short term dip in price (2-4% maybe). This dip in price should be considered a good opportunity to buy and establish your position for the upcoming move higher in the next few weeks.

The Euro continues to be the driving force currently – Greece sold some bonds yesterday to an unnamed Central Bank (they wont say which) causing their debt auction to be oversubscribed. Ostensibly, this is supposed to show you that there is plenty of demand for Greece’s debt – so the problem is over and everyone can get back to their lives of watching American Idol and eating cheeze doodles. Unfortunately, this is not the case. This is simply a stop gap measure intended to buy some time while the ultimate decision is still pondered… what to do about Greece (and Italy, Spain, Portugal, Ireland, etc…) do they bail them out? Do they cut them out of the Euro?

As this plays out, more and more money is fleeing into gold which is providing good support. It is also weakening the Euro which strengthens the dollar thus far preventing it from falling. But, even with this support – the dollar has been unable to rise further – providing further support for gold. If the dollar cant rise – it will surely fall – especially when you consider all the economic realities that are being substantially ignored by the mainstream media.

Gold is heading to $1350ish in the coming weeks. Silver is going to test the previous high of $21. Use the dips in price to build your position.

Gold (8 hour chart)

Silver (8 hour chart)