The Movement of Leverage Capital in Precious Metals

Analysis of COT data through 1/11/01 suggests that connected money has been quietly buying weakness through a combination of long purchases and short liquidation. Friday's data is expected to reveal a continuation of this trend. Recent weakness in precious metals represents yet another example of the transfer of control from weak to strong hands as open interest contracts. This pattern of control, increasingly showing signs of strain, can be viewed throughout the secular bull.

Silver London P.M Fixed and the COT Futures and Options Open Interest Stochastic Weighted Average:


There's always a daily reason. It rarely includes the movement of leveraged capital.

Headline: Gold Prices Slammed by Rate Hike Worries

Rate hike worries were pressuring gold prices Thursday as Brazil led the charge to control inflation. The selloff was accelerated by solid economic data from the U.S. and technical trading.

Gold for February delivery was lost $23.70 to $1,346.50 an ounce at the Comex division of the New York Mercantile Exchange. The gold price traded as high as $1,370.90 and as low as $1,342.40 during Thursday's session. The spot gold price was down more than $18, according to Kitco's gold index.

Source: thestreet.com