by Alasdair MacLeod
The gold price rose strongly on Monday and Tuesday, before drifting lower on Wednesday and Thursday.
In early European trading this morning, gold opened slightly stronger at $1230, up $2. Silver was the star performer this week, rising strongly to correct this year’s underperformance, as shown in our headline chart, and it broadly held its ground while gold lost about $30 from this week’s highs.
Silver’s strength in recent days is an illustration of how the mixture of regulated futures, forwards, and over-the-counter instruments creates analytical difficulties. The only reliable trading figures we have are from the CFTC’s Commitment of Traders Reports, issued after a delay of three days. Those indicate silver is very overbought, with hedge funds holding near-record net longs.