Shaking Out Weak Holders

May 22, 2023

by Alasdair MacLeod Gold Money

Gold and silver prices declined this week, as the shorts mounted an attack on speculating longs. In Europe this morning, gold was trading at $1865, down $46 from last Friday’s close, and silver was at $23.69, down 25 cents on the week. Both metals have fallen significantly over the last two weeks, correcting some of the earlier rise. Comex turnover on Comex in gold was moderate, while in silver it was low.

Gold’s technical chart gives us some context. The price has declined to test the 55-day moving average, suggesting that the decline in mostly done.

[…] Furthermore, gold’s Open Interest on Comex indicates that futures are not overbought, suggesting that when it is over this decline could support a decent upward move.