Precious Metals Jump As China Unwind Fears Spread

While we have become conditioned to accepting the morning meltdown in gold and silver prices that occurs with all too frequent visible-handedness around 8am ET, this morning’s mini melt-up is odd for 2 reasons: 1) It’s Tuesday, which means sell everything that’s not stocks; and 2) as we explained here and here, the unwind of the China CFDs could well lead to a notably higher gold (and silver) price as the forward hedges are lifted.

As we noted here, if we are right that somehow China managed to push gold lower via gold CFDs, then the unwind pushes gold higher:

Here’s how that might work:

More…

      
Plugin by: PHP Freelancer
This entry was posted in Editorial, Financial. Bookmark the permalink.