The rally has been amplified by aggressive call-option buying and a weaker-rate backdrop, with silver now sharply outperforming gold despite growing warnings of blow-off-top risk.
Crash or sell off will be there (in gold and silver) if and only if the price trades below key support for a minimum of thirty-six consecutive trading hours.
Even if gold miraculously consolidates high again out of multi-decade extremes, it likely faces much more drifting and considerable selling back into the lower quartile of its range.
Any time a market starts moving like the silver market has lately, there's potential for downside volatility. You get hot money piling in that didn’t even know how to spell the word silver a week ago.
Ira Epstein covers the recent Federal Reserve decision to implement a dovish cut by initiating a $40 billion monthly purchase of short-term treasuries.
