Gold and silver drifted lower in declining volume. On Tuesday, the day of tonight’s Commitment of Traders report, gold’s Comex turnover fell to 211,897 contracts, compared with more normal days of 300,000 to 450,000. When turnover drops like this, it often indicates downside exhaustion and precedes a technical rally.
Gold fell a further $12 from last Friday’s close to $1268 in early European trade this morning (Friday), and silver by 10 cents to $16.59.
These are holiday numbers, and probably reflect China’s annual Golden Week holidays, which are this week. Ironically, it is the one week that’s not golden for markets, removing the largest source of physical demand for gold for a whole week. This is likely to be a big part of the reason why precious metal trading has ground to a halt.
This post was published at GoldMoney on October 06, 2017.