Gold and Silver Price is set to Rocket up again

As more and more people around the world come to realize that the global monetary system is going to collapse and that all fiat currencies is going to be worthless, demand for gold and silver is only going to continue to grow at an accelerating pace. 

With accelerating demand and a very inelastic supply curve, prices for gold and silver has no where else to go but up, and up, at an accelerating rate.

Current price chart is showing that gold and silver price is set for another price explosion to the upside.

Gold above $1,414 Per Ounce, Brent Crude above $110, West Texas Intermediate touched $100 per barrel today

As the pace of the US Federal Reserve's Money Printing activities accelerates to unprecedented level, the inflationary impact is now being felt everywhere, triggering massive unrest in the middle east, and soon to spread world-wide, Gold, Silver, Oil and all commodities has sky-rocketed in price.

Here is an updated chart of gold price from today.

The bull is definitely winning.

Gold In Breakout Mode

Gold has broken above my key price level of $1,390 per ounce. Price broke above $1,400 per ounce on Monday 21-February 2011.

The stage is now set for gold price to rocket up as the short-sellers get squeezed and stampede out of their position or get liquidated.

Silver Short-Squeeze Intensifies

We saw another over a dollar rally in Silver on Monday even though the US market was closed for the President's Day holiday.

At the current pace, Silver's $50 per ounce price is not far around the corner. As the short-squeeze intensifies, and the short-sellers panic or get liquidated, we may see a $3 to $5 daily price rise very soon, as long as key support of $29 - $30 per ounce is not violated on any pullback.

Looks like the bull is winning this one.

Silver Breaking Out: Short-Squeeze Intensifying

As expected per my previous post, the stage was set for a fast short-covering rally following a price break above my key price level of $29 per ounce in silver (see chart below)

In just 9 trading days upon breaking above the $29 mark, silver price has rocketed almost $4.00 per ounce, a very gigantic-size movement in silver price, and can only be an indication that the short sellers are panicking and desperately need to cover or be liquidated.

In the last two days alone, Silver Price rallied over $1.00 per ounce each day, an indication that the speed or pace or momentum of this breakout is in acceleration mode.

There were very few profit-taking activities as silver close the day near the high, another indication of the intensity of the short-squeeze.

At closed on Friday 18th February 2011, CME announced yet another increase in margin requirement for gold and silver futures contract, another desperate attempt in suppressing the price of gold and silver. Should the impact be only temporary, the stage will be set for a parabolic price rise as "JP Morgan's Silver Price Suppression Scheme" comes unraveled.

Short-Squeeze Imminent in Gold and Silver

Silver has broken above key resistance area at $29 and is now on the verge of rocketing up, squeezing short-sellers.

Gold is now at key resistance zone $1,390, a sustained break could trigger a fast short-covering rally.

China May increase gold Holding to 10,000 Tons

As reported by King World News, Global Economist David Hale made remarks at a conference in Cape Town South Africa that various Chinese officials have proposed making China’s gold holdings 10,000 tons, larger than that of Fort Knox.  

Hale also stated, “The odds very much favor China making, over five years, very large gold purchases, and this in turn makes me bullish on the gold price.”

Hale went on to mention, “China will probably start to buy gold in the near future, but they won’t report it for two or three years.”  Hale noted, “This would be a huge development for the gold market.” 

This is extremely bullish for gold prices.