7.6.26 - Vault Run Continues as Gold Inventory Plunges 30%

7.6.26 - Vault Run Continues as Gold Inventory Plunges 30%

Gold last traded at $4,161 an ounce. Silver at $62.01 an ounce.

Vault Run Continues As Comex Gold Inventory Plunges 30% -King World News

A remarkable vault run is continuing as Comex gold inventory has plunged an astonishing 30%.

Trading conditions on Comex suggest that gold and silver bears are about to be squeezed - potentially viciously. If so, then prices measured in fiat currencies have bottomed.

Let's start with gold. This week, the price has rallied from a low of $4050 on 30th June to $4170 this morning. As is the case in silver the July contract and option series on Comex expired this week, an event which usually leads to a sell-off. That pressure on prices has ended.

As the chart above illustrates, it leaves open interest in the gold contract the lowest it has been since the run-up to the December 2015 low of $1050. This tells us that speculators who sell dollars to buy paper gold are even more absent as they were then, which was the springboard for a decade long $4500 dollar rise. In other words, they will buy gold futures, adding potentially 300,000-400,000 contracts to take it back into oversold territory.