by Alasdair MacLeod
Gold Money
After the sell-off of recent weeks, gold and silver found support at $1250 and $17.40 respectively.
In early European trade this morning, gold traded at $1263, up $7 since last Friday’s close, and silver at $17.47, unchanged.
This is small bear, and not much evidence of better conditions. However, with predominantly bearish commentators, excepting of course the gold bugs who are always bullish, it ranks as a credible performance. Furthermore, open interest on Comex has fallen substantially from the peak on July 11, leaving the market moderately oversold. This commentator is also convinced that some portfolio exposure, as opposed to purely speculative trading, is being maintained in rolling futures positions, so we have probably seen most of the contraction of open interest.