Buying Massive Amounts Of Of Physical Gold

The gold contract is struggling with the bullion banks trying to reduce their short positions without driving the price higher. Last week’s fall to the low $1670s was no more than an attempt to shake out some stop-losses against an improving background for the stock market. The lower levels obviously found buyers, which took gold back to the top of its recent trading range ($1744) yesterday.

Meanwhile, in silver the swaps as a group are slightly short, and patiently working towards going long. In their favour the July contract is winding down, but despite having to pay between 15–20 cents premium to roll into September, buyers are not only paying it, but open interest is ticking higher. This is shown in our next chart.

This week saw another FOMC statement. The Fed is now buying Treasuries and other debt without limit, and interest rates will be zero for the next two years. Despite the massive monetary injection so far which has already taken its balance sheet to over $7 trillion, we now see repo activity rising, indicating bank liquidity issues are returning.

https://kingworldnews.com/alasdair-macleod-alert-big-money-worried-about-collapse-buying-massive-amounts-of-of-physical-gold/