Gold prices should rise from here
Evidence is mounting that the dollar’s recent strength has been a temporary phenomenon, which is positive for gold and silver.
Gold and silver were in consolidating mode this Thanksgiving week following sharp falls on Monday. At Friday’s trading in Asia, gold was $2637, down $77 from last Friday’s close, and silver $30.20, down $1.13 on the same timescale. Turnover declined over the week into Thanksgiving, which is a public holiday in America. Additionally, December’s Comex contracts were running down with first notices for delivery due today.
The combination of contract expiry and the market consequences for the dollar of Trump’s successful presidential challenge has shaken bullish speculators out of futures, leading to a collapse in Comex’s Open Interest in gold and a significant decline in that of silver. These charts are next:
