The Fed funds rate and comments yesterday, including Bernanke’s first ever press event, satisfied the market that the Fed is killing the dollar. Naturally, gold took that as an excuse to finally break free after acting so sluggish recently. Silver, on the other hand, was previously going wild with the other rising assets and now is acting more subdued than gold.

Historically, silver has a habit of running up to its high before gold and then gold rallies, even though silver often does its parabolic stunts toward the end of consolidation periods for both metals. In this case, silver is simply catching up to its previous all-time high around $50, and getting the gold:silver ratio more in line with historical averages. So gold has been way ahead in general terms anyway. Now that the death knell of the dollar has been solidly rung, gold can truly fly.

The cycle top in May, around the 12th, is a good target in terms of a top. In terms of price, my guess is $1600 will be hit by then, and maybe higher. The kind of big moves we’ve seen in silver could now show up in gold.

May 12 is Thursday, so Friday the 13th could be the fateful day when this rally comes to an end. We are witnessing history in the making! Hang on, the ride is about to get even wilder.