One didn’t have to wait but a few minutes after the publication of the August employment data in the USA this afternoon at 2:35 PM to see the price of gold and silver skyrocket, breaking all resistance levels.

The US unemployment numbers for August 2012 are not as good as anticipated, effectively paving the way for Ben Bernanke to announce a new round of « quantitative easing », or QE3, next Thursday, September 13.

The announcement yesterday by Mario Draghi, president of the European central bank, of a new plan for buying back government debts might also help explain the behavior of gold and silver these last two days, because these metals usually react strongly to inflationary policies.

Let’s remind ourselves that in one month only the gold price has progressed by 7,73% and the silver price by 19,75% (in US dollars).

If you’ve been following the charts since mid-August, it will seem clear to you that all of the « correction » movements are now being replaced by massive buying of physical gold and silver, which should entail shorter movements and less of those in the months to come.

And finally, as predicted by GATA’s Bill Murphy last July, it would seem that JP Morgan might be experiencing big difficulties covering their immense short position in silver. The speed at which silver is going up since the end of August seems to confirm his analysis.

The physical market looks like it’s gearing up to dethrone the « paper » market in determining the metals’ prices.


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