Our kind of day. From yesterday’s MIDAS:

"*If the key to the gold price was the dollar, The Gold Cartel could wait for some sustained dollar buying to turn the specs into sellers. Yes, they will try and use this tactic again, but they have a problem: The Indians and the Chinese. Both are buyers in size and are vying for supply at the moment, at a time when The Gold Cartel is stressed to come up with enough available physical gold to meet their demand."

And that is just what happened this morning. After the release of some US economic numbers, the dollar popped to the upside with the euro falling .0040. The Gold Cartel, lying in the weeds, made their move, prompting others to sell. Gold fell to $991.40 in minutes. However, the mega buyers were waiting for them and bid against each other for suddenly cheap gold. It wasn’t long before gold was knocking at the $1,000 door again.

However, the star of the day was SILVER THE MULE, which surged on its own early, even with gold under pressure. When gold began to take out $1,000, silver took off again, making it to $17 an ounce. Same comment from me, one which I have made often the past few weeks: silver is in play. There is a significant buyer, or buyers, who want silver in a major league way and are pricing it via the futures market.

Gold traded in choppy fashion all session long, but in the end, the bulls won out. Yesterday’s featured MIDAS comment deserves a repeat…

*There is WAY too much bearish company out there at a time when there is so LITTLE BULLISH SENTIMENT among the investing public. The Café Sentiment Indicator was on the rise all week, yet went COMATOSE this weekend with the highest weekly gold close ever. Bullish sentiment is tepid compared to the last time gold reached this widely watched $1,000 level.

This is the most bearish the pundits have been (as far as I can recall) due to ONE factor … that being the commercial short position. It seems way too simplistic to me.