As today, Tuesday 2nd progresses, the metals are under more pressure, with gold down 12$ or ~1% and silver down 30 cents or ~ 2%. Translated, the Comex gold(paper/gold & silver ) are down. Some of the short covering featured the past few trading sessions is fading away a bit, and fresh interest, triggered maybe by some awaited news, is still not there for the metals. In the mean time the US $ index is up at 4 weeks high. We are all still trapped into this dollar-fiat fog, and we can’t get out of it or see clear what is going on before our eyes… The PM’s sunshine is long-awaited and we are now in a traditionally slow season for metals, usually traders and dealers can get their vacations around this time of the year. On the positive side, Indian import for silver on pace for a 2013 new best year if all keep staying around these levels.
On the physical side of the moon, the dark side that is always hiding from our paper fog illusion, today volumes were low, hence I can write during trading hours. Beside many internet retailers, major ones, are offering PM’s below cost, even taking losses to get you in, premiums will rise a bit again, so delays especially for ASE. what they doing now is a sort of “0% down 0%APR drive your new car home!” Is a way to get new business without buying leads and making calls, basically. Most of them, also, stopped sales during the big correction in April for few hours when the lines got too hot and prices too low. As the inventories are in turn over, and they will have to buy back the metals, expect higher premiums and delays as we are experiencing, or about to, ourselves. We are just few days/weeks ahead of the curve in this sense.
As i write silver is at around 19.30$ and gold 1242$, still in channel trading and with RSI at around 30-35. The bottom is not completely over, but close enough. Friday is going to be interesting, stay tuned. More premiums and market updates later this evening,
ciao!