Today Michael Oliver, the man who is well known for his deadly accurate forecasts on stocks, bonds, and major markets, told King World News that the price of gold will reverse higher with extreme speed and violence. Oliver also said the gold bears are doomed and gave an update on the situation in the silver market.

Gold & Silver
February 16 (King World News) – Michael Oliver at MSA Research:  A couple observations. 

First, Silver Wants To Bolt Higher
It’s clear that over the past few weeks, especially recent days, silver has been pulling on its leash wanting to bolt higher. You can even sense it in the hourly price action.

But as we’ve said, gold is the mama, and until it ends its laborious corrective/ congestive process, underway now for six and a half months, silver will probably not be able to rush toward its dual historic highs at the $50 area.

Second, The Gold Bears Are Doomed
Second observation. In our view, the gold bears are doomed no matter which route gold takes. Whether it violently flushes out the November low (just above $1760) or whether it simply refuses to play that “Stop them out!” game and turns from above the November low. Currently in yet another effort to take out that low, so far undecided. Notice that the past seven weeks have been more or less glued to channel top and continuing to hold in the upper half of the channel’s action (see chart below).

But whatever the outcome of this correction process, it’s probably going to be savage and rapid in its reversal.

Either the bears get renewed downside below November, and very soon, and then gold pole-vaults back to the upside from some deeper low … or gold teases them with a selloff such as today, which soon flips without taking out the November low, and then quickly moves to our weekly channel breakout number (for this week that was specified as a $1856.30 weekly close, which as can see would be amply above channel top)…

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Gold Will Spike Violently Higher After Bottoming
But expect violence and extreme speed in any final turn from a low in gold—whether a lower low than November or a refusal to produce such a low. We don’t think the mobs will get time to figure it out and position comfortably for the turn. … To subscribe to Michael Oliver’s remarkable MSA annual research, which is 35-50 reports each month on gold, silver, mining stocks, currencies, commodities and debt, at the KWN special discounted rate click here.