Collateral Squeeze

October 10, 2023

by Alasdair MacLeod Gold Money

The sell-off in precious metals continued as bond yields continued to rise and a strong dollar persisted. In early trade in Europe this morning, gold was $1822, down another $26, unchanged on the year. Silver traded at $21, down $1.17. Comex volumes in both metals declined from good levels, indicating that selling pressure is declining.

Comex deliveries in both metals increased in volume, reflecting the end of the October contract. Including last Friday, 8,735 gold contracts stood for delivery in the last five business days, representing 27.17 tonnes, and 334 silver contracts representing 52 tonnes. This persistent demand for delivery is becoming a must-have source for those turning paper gold and silver into bullion, with 338.25 tonnes of gold and 3,514 tonnes of silver delivered this year so far.