As a reminder, this week Thursday the 25th is an option expiration for the precious metals at the COMEX.
Today was obvious short covering and a reflection of the oversold condition and the commensurate tight physical supply situation after a protracted bought of price manipulation on paper.
So what next. I think it would be too much to expect the markets to turn instantly honest.
Next week begins the important August delivery period, and we must keep a steady eye on supply.
The chart shows the first legitimate bottom formation that we have seen in some time, with a 'slanting W' formed and working, at least so far. There was intraday commentary on this here.
The sahibs of India are continuing to try and dampen their people's enthusiasm for buying gold. I suspect that the people will give such maneuvers the small amount of attention that they deserve.
David Stockman says he expects a financial dislocation and a flight to gold.
So let's hope for the best, but brace for antics.
And as always, fulfill your oaths.
Stand and deliver.
