this is a small part of the commentary by bill murphy at lemetropolecafe:

Commentary in this column of late has focused on the way gold and silver have been trading differently, about a different smell to both.

This new aroma percolated this morning. While the dollar remained in the plus column, gold and silver raced to the upside, putting big smiles on the faces of the gold bull camp. The action was more than unusual, as I can’t ever recall such strength after a sharp reversal off the high off a sustained move. The norm would have been a slightly higher, or lower opening, and then an orchestrated drubbing leading to additional spec liquidation.

The new buyers in gold and silver never gave further liquidation a chance, as they bid against each other for suddenly cheap precious metals. Both of them made new high after new higher following the opening. Gold came off a $961.70 bottom, while silver rocketed off of a low of $15.12 … which means both held their KEY support levels … not an insignificant technical plus.

More and more reports are coming my way how low the bullish sentiment is, which is in direct contrast to what normally occurs after major runs in gold and silver. Markets don’t make significant tops on a WHIMPER, which is the way it is at the moment. Hard to imagine, but as you all know from my reports, the general public, and even many money managers, have little relative interest in our sector … especially so when taking into account where the prices are.

Both Fixes were firmer than the prior Comex close, coming in at $967.25 and $970.75 respectively.

The silver action was extremely impressive today … not only for coming back so quickly after a terrible beating, but also that it made new highs during the day independent of what gold was doing. Not to be outdone, gold made new highs late in the day. Having watched gold trade closely for more than a decade, this is one to put in the Hall of Fame action category.

The gold open interest rose 4866 contracts to 395,923, which confirms what was brought your way yesterday. Yesterday’s steep drop was not due to spec liquidation due to a rising dollar. It was THE BUMS dumping the market in order to facilitate a spec liquidation in the days ahead. They were bushwhacked today. The same was true in silver, as its OI went up 1187 contracts to 106,173. It is remarkable that silver was nailed so hard, with new shorts, and yet came right back … in your face type action.

There is one other possible explanation for the unusual strength in gold and silver and we might know the answer when we get the open interest numbers tomorrow … and that is The Gold Cartel short, or just their allies, MAY be forced to cover some positions. Gold and silver may have been set up to take yesterday’s plunge in order to set up a shortcovering rally by the cabal’s big guns…