Kaplan: "..open interest over the next several days must be watched closely."
From Kaplan's "Gold Mining Outlook":
Tuesday's COMEX gold estimated volume was a moderately heavy 55,000 lots. Total COMEX gold open interest on Monday fell 12,082 to 167,560 contracts, its lowest level since June 1997, demonstrating significant speculator short covering which has bearish implications should it continue. COMEX gold warehouse stocks fell 12,006 ounces to 429,899 ounces, while COMEX silver warehouse stocks plunged by 1,387,459 ounces to 103,996,120 ounces, a new 12-1/2 year low. The one-month implied gold lease rate is 1.65%, with the 12-month rate at 2.00%.
Since producers generally use the longer-term rate to lock in hedge contracts, this probably means that some of them have decided that $300 (equivalent spot) is a good price to lock in for their future production. The one-month implied silver lease rate is about 8.5%. The Johannesburg gold index closed Tuesday morning at 884.8, down 17.2,
with the U.S. dollar quoted at 4.9135 rand.
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