by Alasdair MacLeod
Gold Money
Gold and silver broke out from a three-month consolidation in an extraordinary week, which saw a political muddle in America: at the time of writing, the presidential election was still unresolved. By morning trade in Europe today, gold had risen $70 to trade at $1948, and silver by $1.70 to trade at $25.30. Bitcoin also rose, about $2000, signalling perhaps that the crowd outside the gold and silver communities most educated about fiat currency debasement are now aggressively hedging it.
The ending of the three-month consolidation is illustrated in the screenshot of the gold price, below.
[…] Yesterday’s breakout was accompanied by a substantial increase in Comex open interest, up 21,090 contracts on preliminary figures. That is likely to take the bullion banks’ net short position to well over $40bn — we will know more tonight when the Commitment of Traders report for last Tuesday is released.