So far this week Gold has make three attempts at the $1800 per ounce level.  Two off them happened today and were rebuffed.  The first one happened on the COMEx open and the second one, interestingly, happened on the COMEX close.  I spent a lot of this morning watching a 15-minute chart of the price action in the Gold pits to get a sense of how the trading was progressing and it was obvious that various attempts to cap the price during important times of the day took place.

Since today was also the first time that E.C.B. President Mario Draghi spoke since his QE-to-infinity (but with puppet strings attached) press conference in early September the mood in the gold pits was bullish, to say the least, and it would take a Herculean effort to slow the rise of the metal on its way to a clash with the double-top at $1800.

The knife-fighting was particularly intense between 9am and 10am where three of four 15-minute candles where inside bars, meaning the price range was contained within the price range of the previous bar.  80-90% of all bars (and for gold it is 90+%) are outside bars meaning one of either the previous high or low gets busted.  To have 3 out of 4 be inside bars told the savvy trader all he needed to know.  The price was being capped and eventually the truth will out.

Similar moments happened through out the day but the final result was a COMEX close at the high near $1795 which sets up a very interesting Friday.

Will we see a weekly close above $1800?

Silver played along but was also being capped below $35 even though oil snapped back up along with equities.  When Silver takes out $35.50, $40 will be right around the corner.