Stagflationary Outlook

May 01, 2023

by Alasdair MacLeod Gold Money

Consolidation of precious metals prices continued this week, with gold unchanged at $1984, and silver down 26 cents at $24.83. Turnover in silver futures on Comex was healthy, while in gold futures it was more modest. In the four days of this week, 779 gold contracts were stood for delivery, representing 2.42 tonnes.

Gold and silver prices were undoubtedly “managed “by market makers and bullion bank trading desks, to ensure that April gold call options struck at $2000 and above expired worthless. That being the case, some selling pressure is likely to be alleviated in the weeks ahead. But as always, the battle between the bulls and bears continues, with the establishment shorts continuing to try to call the shots. Their position in the Comex gold contract is shown next.