by Ed Steer
The gold price drifted quietly lower until shortly before 1 p.m. China Standard Time on their Friday morning — and then traded sideways until the London open. The bids got pulled — and gold was back below $1,900 spot and down twenty bucks in a very few minutes. From that juncture it crept a bit higher until the noon GMT silver fix — and then was sold lower anew. The Big 8 shorts appeared in force once again at the 9:30 a.m. low tick in the dollar index — and the equity market opens in New York. Gold’s low tick was set a minute or so before the 1:30 p.m. COMEX close — and from that point it drifted quietly higher until around 3:45 p.m. in after-hours trading. I didn’t do much after that.
The high and low ticks in gold were recorded by the CME Group as $1,918.40 and $1,827.80 in the February contract. The February/April price spread differential in gold at the close yesterday was a mere $1.90…April/June was $3.00 — and June/August was $2.70. These numbers certainly encouraged traders to roll out of February and into future months, which they did in droves yesterday.