Gold and silver remain firm

Wholesale market operators who rely on being able to roll leases on maturity face the prospect of having to buy back bullion which has simply vanished.

In a week when the US Court of International Trade ruled that the constitution gave congress the power to levy tariffs and not the president, gold and silver sailed on more or less regardless. In European trade this morning, gold was $3295, unchanged from last Friday’s close. Silver was $33.17, up 12 cents. Trade was quiet in a short week due to public holidays on Monday in London and the US.

Furthermore, this week Comex June contracts were running off the board, which together with option expiry is usually a time of price weakness as traders with long positions and call options sell or abandon them respectively, resulting in sell-offs. They didn’t happen.

Judging by Comex data, gold is actually oversold with open interest the lowest it has been since February 2024.