November 18, 2019 – Gold and silver prices enjoyed a modest bounce last week as selling pressure in the futures markets diminished. Firming prices signal that bullion banks might be done with the latest rinse cycle after chasing the latest crop of speculative longs from the markets.

However, the latest Commitment of Traders report released Wednesday showed another new all-time high in gold open interest, or the number of futures contracts which are open and active.

Even more entrants in the markets, both long and short, were not anticipated following the sharp correction in metals prices over the past two weeks.

The latest report shows the “Commercial” category, which includes the bullion banks, adding long positions and reducing shorts. Small speculators were net short. This may be good news for prices as the bullion banks are usually on the right side of the trade.

That said, it will be harder for metals to get something going to the upside with the current level of complacency in the financial markets.

The DOW is at all-time highs after a nearly unbroken string of higher daily closes over the past month. The U.S. dollar remains strong and Treasury yields have risen from the September lows.



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