Gold is rising on strong technical momentum and a lower U.S. dollar index.  Gold is trading up for the 9th day in a row as of this writing.  After hovering around $1,100 per ounce for months gold is finally making its move towards the $1,200 mark that we saw in December of last year.  There is a lot of fresh speculative buying interest ahead of quarter two earnings season which starts on Monday.

After the breaking news about the manipulation of the gold and silver markets at the CFTC hearings many traders are pushing their positions from paper to physical.  This is largely due to the 100 to 1 leveraging in the paper metals market, meaning that there is only 1 ounce of physical metal for every 100 ounces of existing contracts.  These naked positions have traders concerned that when they call for their gold instead of dollars, that these requests will be defaulted on; if this happens watch for gold and silver prices to rise dramatically on the short squeeze.

David Morgan founder of Silver-Investor, said that if he sees gold trade above $1,150 per ounce for 3 consecutive trading sessions he feels the trend will continue and will likely breach the $1,200 mark soon.  There is a major psychological barrier for investors at $1,200 per ounce.  Achieving new highs is always tough.

Look for the bull market trend in gold and silver to continue for a few years.  The markets have not yet seen the third and final phase of this bull market.  This occurs when everyone wants in and money is pouring into the gold and silver markets like it did into the real estate market in 2004 and 2005.  This will create a massive run up in prices with no support levels being built underneath.  Now is a great opportunity to buy gold coins.