Gold & Silver Prices for August 17, 2020 - Money Metals Exchange
1:26 PM
Check Gold & Silver Prices here: https://www.moneymetals.com/precious-metals-charts/
Volatility is ramping up in the precious metals markets. Gold and silver each took big hits to the downside last Tuesday – gold gave up $100 while silver shed more than 15% – before paring losses into Friday’s close.
The metals were due to sell off purely for technical reasons. They had experienced nine straight weeks of gains, causing momentum indicators to flash majorly overextended readings as we noted in last week’s Alert.
Big upside price action may be resuming, however, due to tightness in physical supplies.
The COMEX continues to struggle to meet unusually high demand for physical delivery of gold and silver bars – invoking creative mechanisms that defer delivery obligations to London. Uncertainty around the ability to deliver physical metal are causing gold and silver contracts to command large backwardation premiums.
Most physical bullion products also continue to command higher than normal premiums. Strong investment buying combined with diminished output by the U.S. Mint and other producers will likely continue stressing the bullion market.
The metals were due to sell off purely for technical reasons. They had experienced nine straight weeks of gains, causing momentum indicators to flash majorly overextended readings as we noted in last week’s Alert.
Big upside price action may be resuming, however, due to tightness in physical supplies.
The COMEX continues to struggle to meet unusually high demand for physical delivery of gold and silver bars – invoking creative mechanisms that defer delivery obligations to London. Uncertainty around the ability to deliver physical metal are causing gold and silver contracts to command large backwardation premiums.
Most physical bullion products also continue to command higher than normal premiums. Strong investment buying combined with diminished output by the U.S. Mint and other producers will likely continue stressing the bullion market.
0 comments