from Silver Doctors:

SD Friday Wrap: With this card still in play, it’s hard to say that gold & silver found their short-term bottom’s on Tuesday…

I’d like to start this Friday Wrap by saying something about this upcoming Sunday/Monday.

I’ll let the Shanghai Gold Exchange do the talking for me:

That is important.

The Shanghai Gold Exchange in China does not re-open until next Tuesday, which means the cartel still has plenty of time to bring the hammer if they want to.

Regardless, I’ll be monitoring the charts when the gold & silver “markets” open on Sunday evening.

So let’s talk about this first week of October!

I have been looking for $1380 gold and $16.25 silver.

Why?

Because the SGE is letting us know that any price divergence between where price closed on Monday (September 30th) to where price opens next Tuesday will be limited to 8% in gold and 10% in silver.

The reason I’ve been calling for $16.25 silver is I don’t really think the cartel can smash prices to a 15-handle, even though the cartel could work silver’s price to well under $16 if they wanted to.

The $1380 gold price is 8.0% down from $1500.

The US dollar to the Chinese yuan is pretty much right were it was towards the end of August, since which time the yuan has strengthened and then fallen against the dollar, round-tripping to basically unchanged.

My downside targets are assuming there are no wild or shocking currency swings.

So do I think the worst is behind us, now that $1500 seems to be holding in gold and $17.50 seems to be holding in silver?

I do not.

Again, based on the fact that the cartel has a “get out of dealing with China free” card, I think we could get a good smashing before it’s all over with.

That said, I’m glad to see gold & silver where they are right now, because I’ve been feeling that $1500 in gold and $17.50 in silver offer some pretty solid support, and we have seen that solid support this week.

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NOTE: THESE CHARTS WERE SET-UP AROUND 1:00 P.M. EST, AND DO THEY NOT INCLUDE PRICE ACTION AFTER THAT TIME UNLESS STATED

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Here’s a look at silver’s price action from last Friday until 1:00 p.m. today:

We briefly fell under the psychologically important $17 price level on Tuesday, but we’ve pretty much round-tripped to “unch”.

Looking at gold’s price action from last Friday until 1:00 p.m. today, we see the yellow metal is slightly positive:

Like with silver, Tuesday was also gold’s weakest day.

I have been looking for the gold to silver ratio to get above 90:

With Shanghai still closed until Tuesday of next week, barring some escalating geo-political military conflict somewhere which could affect the markets come Sunday evening, I’m still looking for the ratio to get above 90, so if the cartel is going to make a move with a price smash, it’s going to happen soon.

These truly are exciting times for stackers, especially with this latest gold & silver price weakness that is quickly coming to an end.

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