Thursday, July 21, 2011

Debt Support Tested

The support has been tested in the time of debt talks.  This is the second time it has tested support, $39 silver and $1585 gold.  If it falls through support, we are looking at the old support levels you know so well:  $37 for silver, $1550 for gold.  If support holds I will wait to see it tested once more before calling the new range.

The debt talks seem to have been made whole.  The left and right wings of the evil US bird are flapping as one, just like the mouths of Boener and Obama.  Soon consensus will be reached for the debt ceiling to be raised.

This will give Geithner and Bernanke green lights to usher in their spending programs, which will mean more liquidity, and higher prices.  I think that the first move for the President's Working Group on Financial Markets will be to suppress the price of oil, gold and silver, but that is a "problem" that can only be papered over.  Soon, after QE 3, at the start of the Fall, prices will again surge.

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