by Alasdair MacLeod
Gold and silver prices were smashed last Monday, when it was announced that Pfizer had produced a drug that was 90% successful in treating covid-19. Wall Street soared with the Dow up 1,500 points at the opening, and the dollar’s trade-weighted index rose by about 0.7%. The logic behind it all was tortuous, to say the least.
On the week, gold fell $71 from last Friday’s close to trade at $1880 in European morning trade today, and silver fell $1.27 to $24.33 over the same time frame. Except on Monday when the excitement happened, volumes were otherwise subdued.
There can be little reason for both metal prices being knocked so hard other than the vested interests of the bullion banks. The chart below explains why.