23 July 2013

Gold Daily and Silver Weekly Charts - Thursday Is COMEX Option Expiration

Gold finally broke through its 50 Day Moving Average today and ran a little higher on that momentum.

It is now in what could prove to be heavy resistance between 1340 and 1360.

Silver is not really moving with gold for now. I think gold is being driven by more of a short squeeze that is particular to its own supply issues, as well as a monetary situation that does not affect silver yet as strongly.

As a reminder, Thursday the 25th is precious metals option expiration on the COMEX.

Trading options on the COMEX is trading paper derivatives of paper derivatives of rehypothecated paper assets.   It is such an absurd game that only 'systems players' would stay with it.