You can also see how the HUI closed at a significant resistance level. A move higher tomorrow and its off to the races.

Fundamentally, the scenario for gold and silver to make new decade highs could not be better. Demand is stellar, while mine supply and visible central bank selling is diminishing. The dollar looks like toast and the fiscal situation for the US, Brits and others is beyond horrendous. Meanwhile, commodities as a group have also turned the corner and bottomed.

We ought to see a gold/silver fireworks display shortly.

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Fannie and Freddie will need at least another $100 billion according the OMB

"The OMB says that the two companies will need at least $92.2 billion more in fiscal 2010. This is on top of the $78.2 billion in aid they've received since they were taken over by the government in September."

http://www.businessinsider.com/fanni...

Quite frankly, the Government's OMB forecast is way too low. Fannie Mae alone has close to a $1 trillion balance sheet. And this does not include the massive derivatives mess that is off-balance-sheet and beyond the public's ability to analyze. If we assume that mortgage default rates top out at 20% - and it's likely to be a lot higher, this suggests that Fannie alone will need over $200 billion in capital, before taking into account all the cash flow liabilities they have off-balance-sheet. Using Enron as a realistic model of off-balance-sheet catastrophes, it's safe to assume that my $200 billion estimate is very low. As the linked article states:

"The two government run mortgage finance companies have been scandalously costly for tax-payers, costing Americans far more in bailout money than they ever saved in cheaper mortgages"

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The AM Fix was very firm at $920. The PM Fix was a bit weaker, but still came in at a healthy $917.

If you tilt the gold chart, you can see how it has completed a MASSIVE rounded bottom and is quietly breaking out to the upside…

June gold (which closed right off its high of the Comex trading session)
http://futures.tradingcharts.com/cha...

A close above $930 ought to send gold much higher and in fast market conditions.

Silver has a similar look as gold, but has begun to STREAK up…

July Silver
http://futures.tradingcharts.com/cha...

When silver clears $14.50, there is little technical resistance until it reaches $16. There is a bunch of congestion around the $17 area. Once $18 is cleared, it could take off like a rocket…