What Happens To Gold And Silver Next? Look Out Below?

update - gold is ripping as news hit the tape that the Fed is withdrawing on tapering.

should be interesting, however I would take everyday, day by day, tho this bounce does help gold and silver for now wanting to slip lower.

Nevertheless, the market will now start to digest this so I would be, as always, careful in saying its all clear now.

I do think tho anyone who has remained short is getting squeezed today.

I also think that despite the price action, while I am not saying you go and sell gold short here, it doesn't convince me that this the all clear either. The funds sold gold and silver with conviction for a good reason.

Golds up 36 bucks, biggest up swing in good couple of weeks....

Gold up $55 and silver up $1.37. I guess the charts didn't see this coming.

Exactly. The way I always put it is if you start an auction at 99 cent you better be ready to sell that item for 99 cents especially in the summer months. If youre a David Lawerence type seller with probably thousands of loyal customers the risk is much lower of that but even they probably eat it on a few sales unless they are buying huge lots to get graded themselves.

Just kind of the nature of auctions which has its good and bad. My pet peeve is people who do that then back out of sales because they didnt like the price. Its their own fault for not starting it higher or having a reserve, you cant have it both ways imo

Lets take a look at the explosive action today.

Just as gold was pushing lower and lower, it got a big jump on the Fed reaction. The same happened with silver. It was interesting to watch gold drift lower in the overnight session and even carry into the next day with making lower moves.

However, when those minutes came out the reaction was swift and gold and silver did pop.

So, what happens now? Well, from my perspective as a trader, lets see what can be done with this first. Will there be follow through like last time? How about challenging that 4/15 gap. Or will this counter move run out of steam? At this point it is way too early to know if this sticks. There is no reason to get involved yet, especially if it results in some sort of range bound trade.

Looking at our proxies, SLV and GLD, the volume wasn't bad. It was huge volume but it was a nice. But again, one day doesn't tell us us much. I have seen such powerful rallies fizzle out days, weeks later so its hard for me to really think much more than that gold and silver got a nice pop. Even after today, don't forget, they are still in a major downtrend. They have a lot of work to do to get out of it.

Lets look at the proxies, GLD and SLV

GLD- higher high, lower low

SLV- higher high, lower low.

You will notice they did have some nice volume, and they cleared a few gaps today in their move. What we should be looking to see is how far this move gets. One possible scenario is it attempts to chop around in the coming days and hold the gains from today before again attempting to crash into the 4/15 gap. To me, that gap is so important and gives me a good way to measure how strong the rebound could be.

So, again, being patient is key here. Also, remember that all one really needs to watch is the price action, don't worry about what the Fed says, its the markets reaction that we watch and can learn from. After all, even the Fed cannot tame the markets nor do they have full faith in what they do.

And yes JK and Baseball on the ebay thing you cant have cake and eat it to eh....

I get so sick of like RESERVE auctions for example, ever notice they often never get met like I bet 8 out of 10 times, minus item just being so rare and special price becomes more irrelevant?

Why, simple RESERVES tick bidders off and most key they are TOO COSTLY via the reserve price ebay charges for them and all the bidders often flee on reserve auctions as I see it all the time.....

I SO much prefer just a seller to just list it at what they want on auction like bid in start of 200 and I will SO much more often buy from them if I can convince myself that bid in price is bargain and others are gonna miss the boat on item hopefully and I will snipe late....

I certainly don't expect .99 cent auctions anymore, just not realistic with all the auctions out there still in often tight cash days, but nice when you find them.....

You get burned a time or two as I have on low starts that becomes ancient history....

Most of eBays sells like 75% are buy it nows anymore seems like statistically speaking and I could be way off there just going on memory....

Sometimes its just as simple as lowering prices a bit til a sell happens....

Waiting for more profit often takes longer but will happen usually if item is what you think it is to others, but I often take the make a little fast MANY times verses waiting for the higher cost item to sell....

That MARKET manager where you create sells and news letters I suggest as well, really helps with bus....

I was just out today making the rounds at the local buy gold places, and one that had been a good place for me to buy had just raised their prices insanely. For instance they had a 1910 $10 Gold piece for $1030. In XF. Heck I sell them, retail, for $775-$825!

They had Silver dollars at (culls) at $35, and all their other silver was priced at 20x. When I asked why so high, they said that the Fed has shown that it is QE Forever, and Gold was just gonna keep on raising, and they wanted to get ahead of the curve.

I'm also seeing some of that attitude online now. There is some thought that putting YEllen as the front runner says that QE is going to run a lot longer than anyone thought. Especially with them changing the metrics. Now they are talking about unemployment being around 5 percent before they begin tapering. They are also saying that they want wages kept down, and easy money to be given to the rich. I'm not entirely sure why that is a good thing, but that's what was said.