Precious metals resumed trading yesterday with a spike higher on the electronic trading platform, which briefly saw silver trade to a high of $15.95 in the spot market. The move higher was short lived as silver and its cousins were back to trading at Friday’s closing levels rather quickly. The market moving news this morning is the agreement in principal of a bailout for Greece and the tentative deal with Iran that will limit their nuclear development in exchange for a lifting of the United Nations embargo.
The market’s reaction has been a stronger USD, higher interest rates as bonds move lower, higher equities and lower commodity prices. On the surface it would appear to be a week where our market will again probe lower, and this may be what I am writing about on Friday, but this morning already shows signs of last week’s big increase in physical demand continuing and if that is the case we may just hold on the probes lower and Friday’s commentary could see me writing about the explosive short covering rally that many have been talking about as speculative short positions continue to grow.