“Nor can private counterparties restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise.”
Alan Greenspan, Testimony Before the Committee on Banking and Financial Services, U.S. House of Representatives July 24, 1998
We are going to have an option expiration on the Comex on this Thursday the 24th. I am not expecting it to be a big event, since October is a light contract, with the real attention and action being concentrated in December.
However, there are over one thousand puts at the 1125 strike, so the cynical me might call that good support.
If I were trying to skin the specs and holders of options with shallower pockets, I would take gold down to about 1120ish, suck in more puts and scare the calls out, and then take the price up and skin all those put holders at expiry.
But this is a one dimensional view of the market, and does not take into account the trade in London and in the vastly out of control derivatives markets. Or the side action in the miners and ETFs for that matter.
There were no (zero) deliveries for gold and silver at The Bucket Shop yesterday.
The slow bleed out of the bullion warehouses continues.
I recall some fellow, I think it was from Barclays, saying that the record low plunge in deliverable (registered) gold bullion at the Comex was because those who owned it did not wish to see it stopped out ‘in a short squeeze.’
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