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Stuart Englert: Price volatility is a psychological tactic built into the gold futures market

Section: Daily Dispatches

By Stuart Englert
StuartEnglert.Substack.com
Wednesday, October 22, 2025

The best way to discourage bullion buying in a bull market, and to contain gold and silver prices, is to increase volatility. The greater the instability, the greater the unpredictability of price moves, both up and down.

Volatility was the name of the game in the precious metals market in recent days. Gold and silver prices exploded to repeated new highs on four consecutive days last week, rising to $4,300 and $54 an ounce, respectively, by Thursday, only to be smashed steeply lower on Friday.

... Dispatch continues below ...


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Monday ended with another up day, but the metals were driven deeply lower again on Tuesday, with gold falling to nearly $4,000 and silver dropping below $48. Yesterday's price plunges were unprecedented for their size since both metals have posted all-time records this year.

Large and erratic price swings are an effective way to curb investment and dissuade speculative margin traders. Volatile prices are particularly important—and potentially costly—to naked short-sellers in a bullish precious metals market since ardent buyers view physical gold and silver as financial safe havens during turbulent times. The metals also are considered money and competitors to depreciating fiat currencies. ...

... For the remainder of the commentary:

https://stuartenglert.substack.com/p/price-volatility-is-a-psychological

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