His detailed the use of open interest on the COMEX to push and pull the price of gold and how the market changed after March 23rd when the futures premiums blew out to a high of $70 over the cash price in the forex markets.
It’s not a producer/consumer hedging platform. It’s a currency hedging/speculator platform.
But in 2020 it’s now a source of physical gold supply for someone and the COMEX isn’t happy about it at all.
The latest raid on gold began on Friday and continued through Tuesday. When all was said and done more than $200 got knocked off the price, peak to trough.
It should have been enough to dampen gold bull enthusiasm given the strength of the rally off the March low. And during the worst of the raid gold moved back into backwardation.
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