February 26, 2018 -- Gold and silver prices suffered last week. A modest rally in the U.S. dollar may be partially to blame. Options expiration was another likely factor.

Both gold and silver closed near the “sweet spot” for bullion banks who sold both call and put options on the futures price. Given the regularity with which this happens, it would be difficult to call it a coincidence.

The Commitment of Traders report on open contracts in gold and silver futures now shows an even more positive set up than last week.

The bullion banks’ short position has dropped further and fewer speculators are long. If the metals markets can find a catalyst – perhaps renewed weakness in the dollar – there is room for prices to rally.

The coming week will a busy one in terms of economic data scheduled for reporting. Investors will get a look at sales of durable goods, GDP, and personal incomes and spending. Good news would strengthen the case for a rate hike at next month’s FOMC meeting, which in turn could reignite jitters in the equity and bond markets.



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