A few weeks ago I wrote on the major resistance point for gold that the cartel has gone out of their way to protect since the beginning of this new bull market, and until now, each time the price has crossed over $1280 it has been pushed down hard with naked paper shorting.
But as we have seen at least three times since the beginning of the year, the bit is in the mouth of the precious metal, and we are once again at the most important point of resistance that if broken through, could send gold easily to $1400 within days.
As we see the gold/silver ratio approach support at 70 we would once again favour gold over silver, both from the expectation that a continued rally in silver will be difficult without the support from gold but also as an insurance policy should the rally once again run out of steam. During a correction silver is likely to take a bigger hit than gold. Not least considering the speculative net-long positioning which has reach record levels.
Gold has been range bound since February but now once again challenging resistance at $1,285/oz.