Gold fall continues as miners face questions of profitability

The message here is very important. The large banks on Comex are long gold and short silver. Any further falls in the silver price will work to their disadvantage, because lower prices are stimulating real demand.  However, the bullion banks appear to have had some limited success forcing speculators to close their long silver positions, as open interest fell by a large 7,892 contracts on Tuesday, reflecting 5,000 July contracts eliminated and not rolled forward, together with a sale of 1,339 December 2013 and 1,432 December 2014 contracts. To shake more longs out of the trees, they will probably need the assistance of a margin hike.

Next week

A data-heavy Monday is followed by a relatively quiet week.

Monday. Eurozone Manufacturing PMI, Unemployment, HICP. Bank of England Mortgage Approvals, Net Consumer Credit, M4 Money Supply. US Construction Spending, ISM Manufacturing Index.
Tuesday. Eurozone PPI. US Factory Orders, Vehicle Sales.
Wednesday. Eurozone Composite PPI, Retail Trade. US Initial Claims, Trade Balance.
Thursday. Bank of England MPC Base Rate. Eurozone ECB Interest Rate.
Friday. Non-farm payrolls, Unemployment.

About the Author
Alasdair Macleod

Alasdair Macleod is head of research for GoldMoney. He also runs FinanceAndEconomics.org, a website dedicated to sound money and demystifying finance and economics. He has a background as a stockbroker, banker and economist. He can be contacted at Alasdair.Macleod@GMYF.org and followed on Twitter @MacleodFinance.

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