05 October 2016

Gold Daily and Silver Weekly Charts - Oversold

Gold and silver remained under pressure from the early New York open today, falling to the hard support trendlines, and then bouncing back a bit into the close.

There was an intraday commentary that takes a look at the basic metals technical indicators which you can see here.

Gold deliveries on the Comex continued to be robust yesterday, with 757,100 ounces 'delivered' so far this month.   Silver is sleepy on the Comex in October, but I have included that clearing report for you to see.

Gold and silver are obviously undergoing a 'flush' designed to knock down the number of longs in the open interest.

The reason for this is open for discussion, but as I have said it appears that the pressures on the physical market are bringing additional attention to the paper markets, with an eye towards discouraging a rush to take down bullion out of a highly leveraged market.  And the holiday in China makes this all the more opportunistic now, rather than later.

Whatever the reasons for these things, gold and silver are both deeply oversold in the short term.

Non-Farm Payrolls Report on Friday, heading into a three day weekend in the States.

Let's see what happens.

Have a pleasant evening.