Market Report: Gold steadies

Gold and silver are showing signs of support this week, with silver notably recovering its poise, as the chart above shows.
Today gold is unchanged from last Friday’s close at $1170 and silver is up 34 cents at $17.10, in mid-morning European trade this morning.
However, bearish commentary is increasing, with increasing numbers of know-it-alls always ready to dream up stories as to why gold has fallen, and why it will collapse further. While no one knows future prices, when increasing numbers of ill-informed commentators profess to, it can usually be taken as a contrary indicator, rather like an oversold index. So the few who say they are bullish at current levels have a reasonable chance of being right, though it may take a little time to be proved.
More seriously, the bullion banks which are short have an interest in encouraging bearish talk, because they do not appear to have loaded up on long positions yet. The net position of swaps on Comex as proxy for them, shown in our next chart, confirms, with net swaps at -80,000 contracts.

This post was published at GoldMoney on DECEMBER 09, 2016.