This post was just published on ZYX Buy Change Alert.
After Mario Monti, the Italian Prime Minister decided to resign, Smart Money has been steadily buying gold and silver. The buying appears to be short covering. In other words, Smart Money is taking profits on the shorts put on near the recent swing high in the metals.
Monti’s resignation has caused renewed uncertainty in Europe. At this time, possibility of a sustained increase in gold and silver prices cannot be ruled out, but it will all depend on Italian politics. We will stay vigilant for opportunities.
For more on Monti’s resignation please see the ‘morning capsule’ on the Real Time Feed.