by Alasdair MacLeod
Despite persistent premiums on Comex over London’s spot gold and silver, both metal contracts were marked down this week, with gold down $54 from last Friday to trade at $1673 in Europe this morning, and silver lost $0.34, trading at $14.86 on the same timescale.
Recent weeks have seen Comex swaps (bullion bank trading desks) struggle to close their short positions. In what appears to have been a coordinated takedown of open interest, the gold price rose. This is shown in our next chart.
[…] To have the gold price rising while open interest is falling indicates a bear squeeze in progress. This one is unprecedented. But since open interest bottomed on 8 April, it has begun to rise again. What appears to be happening is further attempts to close short positions are being resisted by determined buyers taking the opportunity to rebuild positions.