Wholesale gold prices hovered in a tight range just below $1,780 an ounce for most of Tuesday morning in London, just below a new 2012 spot market high touched yesterday following comments from US Federal Reserve policymakers.
Libor, Bernie Madoff, MF Global, Peregrine Financial, zero-percent interest rates, the Social Security and Medicare entitlement funds, quote stuffing and high frequency trading (HFT), and debt-based money. What do all of these things have in common?
Commercials unloaded -5,894 long contracts and covered -4,504 shorts to end the week with 49.00% of all open interest which is an increase over the previous week according to data from the US Commodity Futures Trading Commission.
Gold bullion prices dipped to $1,644 per ounce Wednesday morning in London - 2.2% down on last week's close - before bouncing, while stock markets gained following reports that agreement may be close on enlarging the Eurozone bailout fund.
Metals markets opened with a tad of weakness manifest in gold and lingering strength in the other components of the complex this morning. Spot gold traded near the $1,525.00 area showing and silver opened at $37.18 mark per ounce.
The Commodity Futures Trading Commission on Thursday voted to forward a rule restricting the number of commodity futures and option contracts any investor can hold in metals, energy or agriculture derivatives.