Gold and silver buyers on COMEX are standing for delivery, even as market turbulence continues.
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May 2 (King World News) – Alasdair Macleod: Gold consolidates its rise from mid-December. The May Day holiday in China and with much of Europe shut as well, was an opportunity for the Comex shorts to punish the longs.
This morning marks the ninth trading session since gold briefly hit $3500. And yesterday saw a dramatic markdown which commenced after the end of the afternoon session on the Shanghai Futures Exchange. This morning, gold was trading in Europe at $3255, down $65 from last Friday’s close. And silver traded at $32.60, down 47 cents on the same time-scale.
It was the end of the May contracts on Comex. The previous Thursday saw options expiry, which goes some way to explaining why gold was hit hard after rising to $3500 the day before. So, first it was options expiry, pause, and then contract expiry. These negative forces are now behind us. Incidentally, current Shanghai futures run to the 15th May offering short-term leverage to Chinese speculators.
They seemed to return modestly on the bull tack last night, with gold tiptoeing higher. We will have to see how it pans out today, bearing in mind that at the time of writing, Shanghai futures have shut down for the weekend. It would be a mistake to think that now that Comex is looking at new futures contracts that it will be plain sailing for the bulls.
Gold Buyers On Comex Are Standing For Delivery
On the plus side, we can be sure that the real money is ignoring paper volatility and looking to benefit from any bullion being shaken out. But there is so little of that, that genuine buyers are still turning to standing for delivery on Comex. Since the Easter break, 34.5 tonnes of gold have been stood for delivery, and a whopping 1,993 tonnes of silver thanks to a record 11,692 contracts on Wednesday — an all-time record.
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