Tuesday was quite the day, both gold and silver broke out to new closing highs and show no signs of weakening. Although pulled back a little late in the day, the close was nicely higher and silver closed on 2-year highs.

Both look very strong and show no signs of weakening. The march higher should continue especially considering the global meltdown through the world economies. The uncertainty and uneasiness about rates and other factors are putting a floor under the metals.

Put the big rally together with the bond bubble and you have the perfect storm for gold to make a run to 1600 and silver now ready for a run at 19.00. Our 18.00 target on silver was hit on Tuesday, indicating there is a lot more underlying strength in this market. We are buyers at 18.00 silver and 1530 Gold.

Todd Horwitz
Chief Strategist