Note: For readers not familiar with the concept of our “Melmania” section,
this is where your editor can take any subject and develop arguments regarding
some ultimate conclusions. Since some of those conclusions might sound
extremely radical, the name of “Melmania” seems appropriate.
This is being written at 9:45 AM PDT and the
precious metals markets are in the midst of a furious rally with the following
Gold - Spot $695 - up $15
Silver - Spot $12.43 - up $0.27
Platinum - Spot $1285 - up $17
Palladium - Spot $334 - up $4.00
These rallies are having a powerful effect on the price of mining shares as
illustrated by the current chart of the “XAU” gold mining share Index which is
moving powerfully higher.
As can be seen, the XAU is up eight points - or about five percent on the day
and is moving toward a powerful breakout to the upside at the 160 level.
We plan to monitor developments during this trading session and offer detailed
comment in tomorrow morning’s MM.