I may put something out on this later, but the open interest in gold is really very high, and the next active month for the metal is August. I suspect some of the action we are seeing with price here is designed to try and shake off more of the short term longs.

It would be fairly easy for a short squeeze to occur in gold, because all the longs would have to do is to take delivery and park it as eligible storage, and force higher prices in order to shake more of that eligible gold into the delivery category. This would not be a default since there is plenty of gold overall, given the Comex anyway. But it would be a price squeeze. So let's see what happens.

Greece is far from settled. With some twists it is still progressing pretty much as I had expected it would. The crux of the matter is that the German government and Eurocrats are trying to force an unworkable, painful situation on Greece out of some reflexive emotional commitment to the cargo cult economics of neoliberals. To that extent they are like the Fed and the Bank of England among others.

By Jesse

http://jessescrossroadscafe.blogspot.com

Welcome to Jesse's Café Américain - These are personal observations about the economy and the markets. In providing information, we hope this allows you to make your own decisions in an informed manner, even if it is from learning by our mistakes, which are many.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Jesse Archive

Only logged in users are allowed to post comments. Register/ Log in

The Market Oracle is a FREE Financial Markets Forecasting & Analysis web-site.
(c) 2005-2024 MarketOracle.co.uk (Market Oracle Ltd) - Market Oracle Ltd asserts copyright on all articles authored by our editorial team and all comments posted. Any and all information provided within the web-site, is for general information purposes only and Market Oracle Ltd do not warrant the accuracy, timeliness or suitability of any information provided on this site. nor is or shall be deemed to constitute, financial or any other advice or recommendation by us. and are also not meant to be investment advice or solicitation or recommendation to establish market positions. We do not give investment advice and our comments are an expression of opinion only and should not be construed in any manner whatsoever as recommendations to enter into a market position either stock, option, futures contract, bonds, commodity or any other financial instrument at any time. We recommend that independent professional advice is obtained before you make any investment or trading decisions. By using this site you agree to this sites Terms of Use. From time to time we promote or endorse certain products / services that we believe are worthy of your time and attention. In return for that endorsement and only in the cases where you purchase directly though us may we be compensated by the producers of those products.