Gold & Silver Update

Gold is up $12.50 and Sliver is up .60cents this morning. But both the metals have been beaten down this week, and to me that is real freakin funny! Why, take a look at copper it up big (15 points or so) Oil has ramped up, Grains are limit up, but silver and gold down, "Nah there is no manipulation in the metals market". It crap and everyone who watches this daily knows it, all except the people in charge! Give me a break. Anyway, this is nothing new its been going on for years now and there is no stopping this secular bull, in fact thats whats going to keep the bull going. And though they can be scary if you trade the AGQ (not for the faint of heart, up and down 20 points in a day, some days) I love the pullbacks because it gives me a chance to sell during ramps and buy back lower. 

So Silver and Gold are down this week but it could have been a lot worse. So what happens today is anyones guess but here is what I'm thinking. If gold can get up near 1420 twenty there will be some real buying as people will excited in the metal. As for Silver 34 is the line in the sand, it must be defended or we'll be at 32 quickly. Blythe is defending 36 there are stories out there that they lose billions in derivative losses when silver stays above 36. So keep some powder dry for that 32 level on the physical.

Now for Harvey Organ's Report: The total gold comex open interest fell by a rather large 6141 contracts as some of the speculators started to pitch their longs covering up losses in other stocks. The front options expiry month of March saw its OI drop from 19 to 13 for a drop of 6. We only had 3 deliveries so we lost a few contracts to cash settlements or comex errors in reporting OI. All eyes will be on the front delivery month of April. We saw the April OI fall from 243,356 to 232,371 which seems the rate of contraction. The estimated volume today was a very anemic 105,842. The confirmed volume yesterday was a touch above normal at 167,055. You can see that gold will rise when volume stays below 125,000 contracts.

In silver, the total comex OI fell by a smaller margin from 134,914 to 132,816 for a loss of 2098 contracts. The front March delivery month saw its OI fall only by 25 contracts to 1054 from 1079 despite 57 deliveries yesterday. The next front month of May saw its OI fall from 79,026 to 77,188. It is a little strange that so many are rolling early into the July contracts. The estimated volume at the silver comex today was quite normal at 53,442. The confirmed volume yesterday with the frantic trading due to the Japanese crisis witnessed a huge 86,427 contract day.