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Alasdair Macleod: The physical drivers of gold and silver
By Alasdair Macleod
GoldMoney, Toronto
Friday, June 14, 2024
Gold and silver steadied this week, at the lower end of their current trading ranges. In European trade this morning, gold was $2,317, up $22, while silver was $29.07, down 8 cents. Comex volumes in gold were low, while silver's were high.
The trading dynamics in the two metals are dissimilar, as our two charts show.
... Dispatch continues below ...
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Note the divergence between gold's open interest and the price, and how it contrasts with silver, where open interest and the price correlate as one normally expects in a bull market.
In other words, the gold price has been rising without an increase in buying interest, while in silver a more normal relationship exists between rising prices and buying interest.
Pricing is being taken away from paper markets, with significant premiums developing in Shanghai. ...
... For the remainder of the analysis:
https://www.goldmoney.com/research/gold-and-silvers-physical-drivers
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