alasdair macleod Interestingly, gold’s Open Interest has declined on this bullish move when one would expect a stampede of buying. From its peak on 21 March, in five trading sessions Open Interest declined by nearly 38,000 contracts. Clearly, the Swaps category comprised mostly of bullion bank trading desks are running for cover instead of riding it out with a view to taking out flaky speculators at the first sign of profit-taking.
The Swaps must know something to explain this behaviour, and that can only involve physical demand and supply. Further evidence has emerged from London this week, where jumps in the bullion price coincided with the morning fix, while for the rest of the time the price hardly moved.
This behaviour indicates that overnight and in the early morning London time, bullion banks have seen substantial demand from Asia, demand which is closed out on the fix driving prices sharply higher. With a general lack of physical liquidity, the bullion banks dare not play their normal pump-and-dump activities on Comex. Perhaps on Monday, when London will be closed, there will be an opportunity for the Swaps to hit prices hard.
https://kingworldnews.com/gold-soars-to-record-high-but-take-a-look-at-this/