by Alasdair Macleod, GoldMoney:
Gold and silver were not much changed on a dramatic week. In European trade this morning gold was down $5 at $1690, and silver was down 28 cents at $15.12 from last Friday’s close. There is still a large gap in the performance of gold and silver on the year so far, with gold up 12% on balance and silver down 16%.
This gap says it all: the problem is gold, with the bullion banks’ trading desks net short and unable to close their positions. The last commitment of traders’ report (7 April) showed swap traders (aka bullion bank traders) net short of 165,678 contracts, illustrated in our next chart.