A continued assault in the Gold pits today ensured that Gold ended the month of November down $4 over the opening price.  For the technical guys out there that’s a 2 month downtrend which will have the longer-focused momentum players expecting a down December.  Given how tight the spread between the November open and closing price is there are Monday’s open is marginally more bullish for December from a monthly perspective than bearish, given the month’s range. In other words Gold settled slightly closer to the November high than the low and that sets up a slightly bullish edge for December.

Silver, on the other hand, puts in a very bullish month, albeit weakly as there were no resistance levels broken to the upside.  What Silver did do, however, was again test the $30.50 zone and bounce off of it with vigor.  Yesterday’s operation on Silver to knock it back below $34 will give some momentum players pause but if bulls are committed to taking he price higher now that options expiration / delivery shenanigans are behind us for the time being they will pile in early next week.

I would not be surprised to see both metals have to slog it through the first few days of the delivery period as the bullion banks, having already claimed force majeure, pound any longs standing for delivery who rolled forward into January and force them to settle in cash to avoid margin calls on their January positions.

With the reports of even more physical demand showing up in India, China and Russia it is becoming harder for people to believe these prices are even remotely reasonable.