Unless markets collapse over all in a rush to liquidity I think gold and silver are both oversold short term and will likely find a footing here.
Next week is an option expiration for gold and silver on the COMEX.
I am waiting to see how the physical selling numbers come in. That is the most important thing to me as we work through a delivery period with short supplies.
In my mind this sell off was a just another paper based phenomenon enabled by slack regulation by the CFTC.
I would feel more confident if the metals can break up through their 50 day moving averages.
Today on Bloomberg Mr. Laszlo Birinyi said that 'gold is our biggest short.'
I hear the commercial hedgers are near record lows on shorts.
Let's see what happens.
