I wasn’t paying attention to the precious metals for a few mintues. I get an email from Bill “Midas” Murphy that just said “what the heck?” I knew right away to look at the metals market trading. Gold and silver both spiked up suddenly just after 9 a.m. EST:
My response: I don’t see any new Bill. The dollar has been dropping hard all morning.
Honestly, a spike like this on no news is ALWAYS welcome. I’m wondering if a few more longs decided to hang on for delivery than was expected. I know the open interest was much higher on Friday than I had expected.
The dollar has been dropping hard all morning. Certainly it can’t be on any possible Greece news or rumors given that the SPX appears to be resuming it’s parabolic bubble move higher while the U.S. economy is turning south – quickly.
Perhaps what’s most interesting to me about the behavior of gold and silver as we moved through options expiry last week and into first notice is that the Comex bullion bank criminal-admitted-felons gold cartel was unable to smash gold despite unusually high open interest on first notice. While I predicted that the o/i would tumble below 10k contracts by Friday, it was still a healthy 8k+ open contracts, which is more than 2 times the amount of available gold in the “registered,” available for delivery accounts in the criminal bank vaults.
The metals are definitely behaving differently right now, and I’m not the only analyst who has noticed this.