Gold and Silver Rising Strongly

April 17, 2023

by Alasdair MacLeod Gold Money

Gold and silver had a positive week, with prices rising strongly. In European trade this morning, gold was $2038, up $30 from last Thursday’s close (Friday was Good Friday), and silver was $25.95, up 100 cents. Silver’s outperformance, which is evident in our headline chart, has dropped the gold/silver ratio to below 79, having peaked at 91 in March.

Given the reduced trading over the Easter holidays, one would have thought that the shorts would have marked prices down aggressively to trigger profit-taking and to take out stops on Comex. But that didn’t happen. Factors limiting this strategy appear to be the shortage of physical, and that slashing paper prices merely encourages physical byers to acquire bull positions with a view to standing for delivery on Comex. Presumably there is a similar situation in London’s forward market.