Gold and silver we hit again today, but silver managed to hang on to its 15 handle, and gold bounced back to 1050.
I suspect that this was the usual sort of antics we see whenever some Fed head appears before the Congress for some 'confidence building.'
Gold and silver are now both short term oversold, and at some key support areas.
I may put something out on this later, but the open interest in gold is really very high, and the next active month for the metal is August. I suspect some of the action we are seeing with price here is designed to try and shake off more of the short term longs.
It would be fairly easy for a short squeeze to occur in gold, because all the longs would have to do is to take delivery and park it as eligible storage, and force higher prices in order to shake more of that eligible gold into the delivery category. This would not be a default since there is plenty of gold overall, given the Comex anyway. But it would be a price squeeze. So let's see what happens.
Greece is far from settled. With some twists it is still progressing pretty much as I had expected it would. The crux of the matter is that the German government and Eurocrats are trying to force an unworkable, painful situation on Greece out of some reflexive emotional commitment to the cargo cult economics of neoliberals. To that extent they are like the Fed and the Bank of England among others.
Have a pleasant evening.
