Here we go!

I hope that I am not premature with this post being that the markets are still open. I am looking at a $11 of so gain for gold to about $644 /oz and a about a $.30 gain for silver to about $13.15 / oz. I have recently talked about how gold is just kind of hanging around with limited action either up or down. Well, this might be the beginning to a couple of pokes at a major breakout.

There is a strong resistance point for gold at around $650-$655 /oz and around $13.30 for silver. I don't necessarily think there will be a breakout today or tomorrow, but I do believe that it's on the horizon. We will probably see a couple attempts at the barrier before we actually break through. There are still a lot of investors "straddling the fence" in regards to the precious metals market. Some believe that there is still a chance for a strong break down. I don't count this out of the question, but a bold move to the resistance point of 650 will sway some opinions. That's why I'm quite excited about today's action thus far.

I am tempted to say "when", but I will leave it at "if", we break out, look to see a $20-$30 gain in gold and a $1.00-$1.50 gain in silver immediately. This will happen because if we break out, all the fence straddlers will hop on board sending the price of precious metals through the roof. Folks, if you want to get on the train you better start running, because its about to leave the station.

Overall this is positive news and I still stand beside my prediction of gold and silver hitting record highs this year.