Bank Crisis Pushes Gold to Near Record

May 08, 2023

by Alasdair MacLeod Gold Money

On the back of worrying developments in US regional banks, gold and silver performed well this week. This morning in European trade, gold was at $2039 up $53 from last Friday’s close after briefly testing new high ground, and silver was at $25.88, up 90 cents. Volumes on Comex picked up with the rise, and gold’s Open Interest is moving into neutral territory rather than being overbought, but silver is still marginally oversold. This is illustrated in our next two charts below:

[…] Recent history has seen even higher levels of open interest, evidenced in these charts. But it is always difficult for technical traders to adjust trading history for the facts. For the facts are that we have a totally different situation today from anything we have seen since the 1970s. On balance, with the prospects of an end to the Fed’s interest rate hiking cycle, or the alternative of or even an accompanying banking crisis there is room for even more buying of Comex futures.