GoldCore Precious Metals Update – Commitment of Traders (Comex) Data Shows Speculative Fever Not High in Gold or Silver

Gold
Gold closed above the $1,000/oz level for a fourth session and is currently trading at $1,014/oz. During yesterday’s trading it touched a new 18 month high of $1,023/oz.  The gold open interest on the COMEX rose another 3764 contracts to 478,172 which is still a long way from the record 593,953 contracts seen in mid January 2008 (http://www.technicalindicators.com/cotgold.htm). Indeed such open interest figures were seen for much of the final quarter of 2007 and the first half of 2008.

This contradicts those who claim that the gold market is in a speculative fever and would suggest that gold has further room to run prior to the much anticipated correction (by both the media and most gold analysts). Many traders are likely looking for gold to reach new record (nominal) highs prior to ‘selling on the news’ and taking profits. But some may look to buy on the breakout in anticipation of further gains. Recent resistance at the $970/oz to $980/oz mark will likely now become strong support, and with investment demand in China, Asia and the world remaining robust those expecting large falls to below the $950/oz level are likely to be disappointed.

Silver
Silver is currently trading at $17.17/oz and touched $17.63/oz overnight. While silver is overbought by some technical measures, the important Commitment of Traders report shows that the silver open interest went up 155 contracts to 125,306. While this is a new recent high, silver’s open interest high is around 150,000, some 25,000 contracts less than we are now. This too contradicts the bears who claim that speculative fever is too high based on the COT data. Silver at over $20/oz remains viable before the end of 2009.

Platinum group metals
Platinum is trading at $1,336/oz this morning while rhodium and palladium are trading at $1,650/oz and $302/oz respectively.

Mark OByrne

Also on news-goldcore-com

Videos

What we can Learn from the International Gold Market

Jim Rogers Interview 2022

US CPI Data Release Update

Blog posts

Brace Yourself for the Impact

Fed’s message this week – higher rates, lower economic growth, higher unemployment. The Fed hiked interest rates by 75 basis points for the third straight meeting and the statement said that the committee anticipates further increases. The Summary of Economic Projections (SEP) showed that the median projection is for a further 1.25% increase by yearend. […]

READ MORE

What we can Learn from the International Gold Market

Today’s guest on GoldCore TV thinks it’s very likely that in the next ten years we will be moving onto a new gold standard. It is of course, not uncommon for gold market commentators to say something along these lines. But Jan Nieuwenhuijs is a gold analyst, who is bringing the chat around gold demand […]

READ MORE

Jim Rogers Interview 2022

We last spoke to Jim Rogers way back in January. He told us then that we were set to see the ‘worst bear market’ in his ‘lifetime’.  Since then, a lot has changed. Russia has invaded Ukraine, inflation has gone on a tear, Europe is facing a major energy crisis and the US has been […]

READ MORE

Featured

Rick Rule- Should You Invest In Gold 2022

READ MORE

Jim Rogers- The Worst Bear Market is Coming

READ MORE
Newsletter
Category
Archives
Popular

No posts available

Videos

What we can Learn from the International Gold Market

Jim Rogers Interview 2022

US CPI Data Release Update

Blog posts

Brace Yourself for the Impact

Fed’s message this week – higher rates, lower economic growth, higher unemployment. The Fed hiked interest rates by 75 basis points for the third straight meeting and the statement said that the committee anticipates further increases. The Summary of Economic Projections (SEP) showed that the median projection is for a further 1.25% increase by yearend. […]

READ MORE

What we can Learn from the International Gold Market

Today’s guest on GoldCore TV thinks it’s very likely that in the next ten years we will be moving onto a new gold standard. It is of course, not uncommon for gold market commentators to say something along these lines. But Jan Nieuwenhuijs is a gold analyst, who is bringing the chat around gold demand […]

READ MORE

Jim Rogers Interview 2022

We last spoke to Jim Rogers way back in January. He told us then that we were set to see the ‘worst bear market’ in his ‘lifetime’.  Since then, a lot has changed. Russia has invaded Ukraine, inflation has gone on a tear, Europe is facing a major energy crisis and the US has been […]

READ MORE

Featured

Rick Rule- Should You Invest In Gold 2022

READ MORE

Jim Rogers- The Worst Bear Market is Coming

READ MORE