Gold had a nice steady rally up to the 1160 area, and then was capped there for the rest of the day.
Silver managed to climb back up to the 16 handle, but was not able to hold it this week which was a little disappointing.
Gold even managed to show a little delivery action at The Bucket Shop yesterday, as a few paper receipts managed to change hands amongst the house accounts of JPM, Nova Scotia, and HSBC.
Next week is likely to be a little more important test for gold as it is now bumping up against some overhead resistance in the long bear market.
The warehouses are a bit thin on deliverables, and as my friend Dave asked, 'why does no fund ever try to take this price and supply situation in hand and stand for delivery?'
That is a very good question, and one that has occurred to most of us when we see the kinds of setups that have been seen to work in these markets.
I have always thought it to be a kind of professional courtesy; the same reason why carnies do not play at each others games in front of the townies, except in some supportive role.
I have included the economic calendar for next week.
I have noticed that the precious metals trolls have been acting a bit forlorn lately and thowing out a lot of exceptionally weak material. Perhaps we are nearing a short term top. Well, it is hard to say. And so I won't.
On Monday 12th October our Canadian friends will be celebrating their Thanksgiving.
And a happy one to you all. As a consequence their markets will be closed.
Canada is the country that most Americans still think that they have, or would like to have, but don't.
Have a pleasant weekend.
