Market Report: Resisting the Downside

by Alasdair MacLeod
Gold Money

Gold and silver continued to move sideways this week in a narrow range. Monday was a public holiday in the US, which seems to have set the quiet tone. In European trade this morning, gold traded at $1561, unchanged from last Friday’s close. Over the same timeframe, silver lost 15 cents to $17.85.

The trading pattern appears to have returned to moderate weakness during European hours, and a firming later in New York. This suggests that despite near-record net longs, US hedge funds are not selling. Instead, it feels like a bear squeeze is putting continual pressure on the Comex shorts, predominantly the bullion banks.

There appears to be a split emerging, with the large four traders only moderately short between them on Comex, as shown in our next chart.

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