Pic wrote: "Yeah....gold actually was back up to near $1740 earlier toay and NEED be back above $1750 by early next week. Silver is performing much better off of its low because it had a greater % drop [some $5.30 over last 7 trading days to $30.96 last evening]........

...........As you pointed out, these markets need to move up quickly from here to avoid lower lows early next week. And there is room for that early Monday with the net result still being a successful test of Nov.1 lows

There were silver margin hikes overseas not reported by the media and the European debt and banking contageon makes us all nervous as heck. The hedge funds surely dump G&S first when they need liquidity [cash]."

It shouldn't come as a surprise to anyone to hear the EGM model completely sold out today, closing all positions for a net loss of $60/oz courtesy the great unseen hammer in hand. All of last week the 7/24 charts showed signs of an ongoing coordinated campaign registering at least one rapid takedown every 24 hours. Whoever's pulling the strings sure wants to scare the dickens out of anyone who may be considering Gold & Silver as a safe haven away from all the rot that is infesting our financial and sovereign institutions.

Be warned Gold got taken down $200 in 3 days at the August option expiry date and $300 in 3 days at the September OED (who's watching the watchmen?) The EGM model is not designed to predict these atypical events and thus is prone to being whipsawed out of the market, but outside the scope of the EGM, tomorrow may present a decent bottom fishing opportunity.

For now the EGM Gold Model has gone neutral. Technically speaking the one-year uptrend line says Gold had better hold $1640 although similar to September, it could briefly overshoot by as much as $50 if enough Hedgies puke up their positions. Bottom line: we've taken a lot of technical damage that is going to take a couple of weeks to wring out of the system and right the ship again. The prevailing cycle remains positive into 2012 but TPTB sure are trying their darndest to rain on the party.