Gold: Bloody Sunday and More (Nov 29th-December 4th)
An Exchange war for Commodity Pricing dominance has just begun
It’s hot potato time. The physical market in China is bleeding out into the west. Should be a big push back now. There are now people in the gold market who bought it tonight and are actually losing money. They will react making this market more volatile.
-Sunday Dec 3rd, 7:53p.m after the first first wave of selling came in post new ATH
Good Afternoon. Below is a summary rundown of key points to be touched on tomorrow in a little more depth1.
We wanted to get some final input from our contact on mainland China regarding options trades and last week’s SGE/SFE EFP activity and there are open questions before piecing it all together.
It has been a busy day.
Suffice to say: This is definitely in no small part due to Chinese physical demand overwhelming Western futures markets temporarily. We saw this in Silver last year and earlier this year, with a far more muted effect.
Bottom line: You do not backwardate Gold without stirring up some problems.