Today was Option Expiration Day for the metals on Comex. Presumably the call holders have been beaten sufficiently, and now it is the turn of those holding puts.
This is a nice bounce, but as a caution the downtrends in the short term have not yet been broken.
In an earlier piece today about the gold market we discussed leasing of gold by central banks into the markets which certainly does happen. The only question is how often, how much, and for what motives.
Rob Kirby has written a comprehensive piece on the Gold Carry Trade a few years ago, which I link to here. If you have any interest in this it is a good place to begin.
