Gold and silver were both in rally mode today, continuing the 'bounce' off the recent bottom and a desire to move higher.
There was intraday commentary in which I suggested that we are seeing a flight to safety, wherein gold bullion tends to lead riskier aspects of the precious metals higher, and moves in conjunction with the dollar pretty much.
I also mentioned the potential 'cup and handle' bottom which I have alluded to previously, and posted a closeup of what the chart formation would look like if it was activated.
You may read that here.
There was a bit of bad news today. According to Koos Jansen, China has stopped publishing the Shanghai Gold Exchange's Withdrawal figures. You may read his recent article on this at his blog site here.
When I was looking up the latest reports on activity in the CME licensed warehouses, I was a little surprise to see that the registered for delivery gold bullion plunged by about 2/3rds. And so I posted an update on it which you may read about here.
As I have said before, this does not imply a default to deliver is imminent, or any of ther other things that some will say it means. It is likely an indication of physical tightness and gold being held in strong hands not for sale at these prices.
But it also does not mean nothing, as some apologists for the current way of conducting this business would have you think. When something has not happened before, over a period of many years of data, chances are pretty good that something has changed.
As my friend Nick says, 'Let the shorts burn.'
FOMC tomorrow. And as a continuing reminder, these markets have hardly become transparent and efficient, so be ready for anything in the short term.
Have a pleasant evening.
