Silver still has my attention, especially in regards to a stunning move to the upside, one which will catch most of the industry by surprise. Yesterday’s late fall off a cliff close should have been a climactic one … the KILLER MOVE down that flushes out the last of the weak longs before a stunning move to the upside kicks in. A killer move can be best defined by a steep selloff, then a higher opening the next day, one which leaves a small gap, and then goes straight back up. Only time will tell on that score. However, if we are back above $18 by next Friday, then that will have likely been the case.

What makes that scenario very probable is the price action of other commodities, which continue on the move to the upside, especially copper, which rose more than 4 cents per pound to $3.29. Silver is just too cheap at these price levels.

The silver open interest went up 773 contracts to 118,143. It would have been better had it fallen like gold, but perhaps there were a number of new buyers which were waiting to take advantage of the giveaway price above the $17.30+ level.

Another sign that gold many have put in a climax bottom too…

US gold futures volume hits record high Wednesday

NEW YORK, July 29 (Reuters) - Trading volume of U.S. COMEX gold futures rose to an all-time high on Wednesday, driven by a combination of options expiration and contract rollover.

Turnover of COMEX gold futures contracts was 424,316 lots Wednesday, surpassing a precious record of 409,842 contracts set on May 25, according to the CME Group.

Volume has spiked this week as investors rolled their August contracts into December futures ahead of first-notice day on Friday.

On Tuesday, U.S. gold dropped 2 percent to its lowest level since May as the August COMEX options expiration and weak economic data triggered heavy technical selling.

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