It sure looks like gold and silver have bottomed here.
Some type of a reaction should be expected after gold goes up for 8 days in a row and silver goes up 7 days in a row. These many days in a row are unusual.
Gold almost made it down (in the US, overnight) to the Fibonnaci retracemment level of 61.80% or about 490 and 1/2. Prices can come close to Fib levels or over shoot them a little bit . The spot low was 493. Good enough in my book. Silver did the equivalent to the 50% Fib level. Many newsletter writers think that gold has put in a major intermediate top. What they do not understand is the large amount of gold that central banks have to sell or lease to their compatriots/partners in crime,
the money center/investment/bullion banks. And, that central banks are runnning out of gold to lease or sell, and, that some central banks are beginning to seriously question selling or leasing gold, and, that some central banks are now buying gold. That there are monster short positions that have to be covered (which takes buying).
Give gold a couple of weeks at this level and it is up and away again.
The AMEX's HUI gold and silver stock index is saying that, too.
Here is a 6 month chart of the HUI
Where is the panic in the HUI? All the HUI did was make a slight retracement.
The HUI just recently broke up and out of a 2 year consolidation. And it held above it during this gold and silver reaction. That is a huge positive for not only the shares but for the metals themselves.
Here is a 3 year chart of the HUI
Those short gold, silver and the shares have got to be scared silly at this point.