Decision time beckons for gold. $1140 is a significant level, as that is the level that gold must “best” in order to confirm the correction is over. It is currently sitting modestly below that level trying to drum up support for the charge upwards. It wouldnt surprise me if it takes a bit of time to work through this as traders jockey for position with those thinking that it gets rejected at this level press their selling and those that think we are headed higher adding to their positions. That is what makes a market – buyers and sellers, each with their own reasons, charting, experiences, etc…

Silver, I believe is leading, showing the way forward. It has a bit of resistance above it that may take a few days to clear, but, clear it I think it will. Silver has already confirmed that its correction is over and with each passing hour, more investors/traders get comfortable with that reality and ply on new positions. That buying pressure will press the shorts, giving them discomfort and forcing the weaker amongst them to begin to cover thus adding fuel to the buying fire.

The most formidable resistance we have is shown in the chart as a rising green line currently at about $18.70 and rising. It is the lower boundary of a rising wedge which you can see on a daily chart. Normally, that would be a bearish indicator. I say normally because we are definitely not living in normal times. In order for that to be an accurate signal, you would have to accept the fact that the liquidity is about to be withdrawn from the market, which would cause all asset classes to crash (except for bonds) – credit crunch part deux.

The Obama administration has already come out publicly and stated categorically (via Tim Geitner) that that will NOT happen and that they are committed to the economy continuing its recovery with jobs to begin picking up later this spring. That fundamental – and their ability to manipulate markets by pumping in whatever amount of liquidity is necessary in order to keep markets levitated is my core belief of why this rising wedge is a continuation pattern – not a bearish indicator, and why I believe silver is going to skyrocket higher in the coming months.

Dont listen to those that try to talk you out of your positions – try to get you to sell your insurance. They dont have your best interests in mind. Instead, they have their own agendas. They want your precious metals. They want your mining shares. They want prices to come down so they can somehow extricate themselves from their foolish short positions they are trapped in.

Dont give the bastards the satisfaction. Stay the course. Buy any dips in price. We are going much, much, much higher…