Loading ...As mentioned yesterday, the Dow/Gold Ratio had reached intermediate support (5 year low), and should see some support (even though it’s crashing).
Today we have stocks and bitcoin trading off dollar weakness more than PMs because of technical selling by CTAs (whoever).
Thing is, if physical deliveries remain high at Comex, and they are, one could think that the combination of that, and the big reduction in speculator open interest (OI) today in gold and silver, will at least bring gold back into the buy zone from an open interest perspective (allowing speculators – and physical buyers – to re-enter at an attractive level). We will see the damage tomorrow and in coming days.
Metals Daily Exchange Volume & Open Interest – CME Group
Silver, unfortunately, may continue to have a tougher time, because once this bounce in the Dow/Gold Ratio is finished, the crash in stocks could be epic, holding the commodity complex back due to growth/liquidity concerns. On this basis, things will not get better until another money printing binge starts.
That said, Trump’s tariffs may cause a global price reset higher (~10%?), which will raise the cost of production on all commodities. So if the cost of production for silver was already $26, soon it could be pushing $30(rounded). Add to this word is leaking that wait times for silver in London could be as long as nine-months now (a rumor) because the bankers continue to attempt to push people back into paper; and someday, some faithful day, the king will finally have no clothes.
They only have five months supply at current run rates.
Just a few thoughts to temper the emotion resulting from this raid.
It would be nice if gold can finish the week above $3,000.
Cheers all