The anticlimax of the Cyprus bank reopening makes bizarre Sinclair's prophesies of global fiscal doom, and doesn't foretell any sudden rage for gold. Looks like we continue to watch paint dry for the time being.
<<Cypriot banks reopened for the first time in two weeks and things went surprisingly smooth. We didn't see the capital flight which the markets had been building up and pricing into the euro. Instead of seeing headlines about bank runs and massive lines of bank depositors, we saw headlines of optimism. We know this can change at the drop of a hat, but most banks were only reporting lines of maybe 15 to 20 people. It was expected to be a mob scene, so banks were restricted to only have about 8 people in the bank at a given point. Most people were simply withdrawing funds for daily use instead of expressing a desire to pull their balances. I think a round of buy the rumor and sell the fact was at work, so when things didn't blow up, we probably saw a good chunk of shorts get closed out.>> (Pfennig)
From Harvey Organ:
<<
The total gold comex open interest fell by 1916 contracts from 419,722 down to 417,806. It is quite weird that many decided to throw in the towel at month's end instead of rolling. The cost to roll to the next active month is tiny. I cannot explain investors behaviour on this one! The non active front month of March is now off the board . Today is first day notice for both April gold and silver . The front April OI fell by 20,396 contracts from 33,764 down to 13,378 contracts. As I explained to you yesterday, the OI remaining was quite large and indeed it looks like 1,337,800 oz will stand or 41.61 tonnes of gold. Together with March's 13.1 tonnes, we have almost 55 tonnes of gold delivered or to be delivered upon. This is represented by 72% of the registered gold.
The non active May gold contract saw a rise of 102 contracts from 507 up to 609. >>
Whatever's going on, it's not transparent. |
