Friday's early sell-off in precious metals was somewhat short lived if only for gold and palladium, which reversed course on news that Ukrainian forces had attacked a Russian convoy. The rally that ensued in gold was met be sellers which continued overnight as gold has failed to hold $1,300.00. Palladium on the other hand continues to rally and this morning reached a 13 year high as it traded above $900.00.
While gold continues to trade above the 100-day moving average this morning at $1,296.50 which happens to be the current intra-day low it feels like it is skating on thin ice. Large option purchases have been the precursor of a move in that direction on a few occasions over the past year and if this pattern continues gold could come under pressure in the weeks to come as large bearish option trades for November expiration were reported on the COMEX both on Thursday and Friday. Further pressure could come from speculative long liquidation as CFTC data for last week showed that speculative longs positions grew sharply.
This past Friday ushered in a new era for the silver market with the inaugural LBMA Silver Price which replaced the LBMA Silver Fix. As far as I could tell the transition went smoothly. Below is a copy of a press release regarding the new Silver Price. Here is a link to the LBMA’s FAQs.
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