Firm undertone despite contract expiry

Gold and silver prices reflect relentless demand from China and Asia, who are simply getting out of dollars.

Normally at contract expiry, gold and silver prices get smashed as call options are driven into worthlessness and stops are triggered by the establishment’s shorts. And given silver’s spectacular performance this month (up 18%), a substantial retracement was to be expected. The outturn was less dramatic. Gold was marginally higher on the week, up $10 at $2344 in European trade this morning from last Friday’s close, and silver was up 75 cents at $31.15.