This post was just published on ZYX Buy Change Alert
As the first rumor of killing of American ambassador to Libya surfaced, Smart Money buying of gold and silver started in earnest. So far the buying has ranged from mild to heavy.
Buying in silver by Smart Money is short covering; the data on gold is mixed.
As details of Obama’s call with Netanyahu regarding Iran started leaking out, it contributed to buying.
Oil is also moving up as expected.
German court giving greenlight to ESM was expected and theoretically should already be discounted in gold and silver prices.
Momentum in gold and silver ahead of the Fed meeting continues. The Fed meeting starts today and the decision will be announced tomorrow.
Both gold and silver are very over bought and would normally be vulnerable to give back at least part of the recent rise. However continued buying by the momo crowd is bringing prices to a level that is necessitating short covering by Smart Money putting further pressure on the upside.
As of this writing gold is at $1742 and silver is at $33.89.
We will be providing more information later today as more trading data becomes available.
