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Ted Butler: What happened?
By Ted Butler
SilverSeek.com
Wednesday, December 6, 2023
Of course I'm referring to the wild price ride in gold and silver from Friday's near all-time price high in gold to Sunday evening's initial blast to the upside of as much as $60, to a selloff of $120 and to where gold closed trading yesterday lower by more than $50 from where it closed on Friday.
Silver fared even worse, up barely 50 cents at the price highs Sunday evening, only to finish yesterday down $1.30 from Friday's close (and even lower today).
... Dispatch continues below ...
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Given the unusual price volatility, there were countless stories seeking to explain what happened. Please accept this as my explanation.
As always, the price volatility was the direct result of paper positioning on the Comex, no more, no less -- albeit more extreme than usual.
As described in the weekly review, from the price lows of early October, gold had rallied by $220 and silver by $4.25 into Nov 28 (the latest commitment-of-traders report), driven higher by the buying of 140,000 net gold contracts (14 million ounces) and 29,000 net silver contracts (145 million ounces) by the managed money traders (technical funds). Continued managed money buying from Nov 28 through last Friday undoubtedly drove gold and silver prices higher into Friday's even higher close. ...
... For the remainder of the analysis:
https://silverseek.com/article/what-happened
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