U.S. GDP Surprise Hits Gold, Silver

July 03, 2023

by Alasdair MacLeod Gold Money

Gold and silver declined further this week, as first growing suspicions that dollar rates would stay higher for longer undermined sentiment, and then a surprisingly strong US GDP revision for the first quarter of this year pushed gold to as low as $1883 yesterday, before it recovered to be unchanged on the day. This morning, in European trade gold was at $1906, down $15 from last Friday’s close, and silver was at $22.45, unchanged on the week.

Silver’s Open interest on Comex has collapsed to the lowest levels in ten years. That’s over 34,000 contracts less than were open on 20 June, when the last Commitment of Traders numbers were posted — there will be an update for the position on Tuesday later today. But look out for the Swap’s position, which is bound to have turned net long.