Looks like India was in serious “buy” mode last night after the London/NY ambush of paper gold. Per JB’s invaluable report to be found at http://www.lemetrolecafe.com/:
Indian ex-duty premiums: AM $5.19, PM $5.19, with world gold at $1,339.56 and $1,340.20. Very ample for legal imports…Overnight gold weakness (Dec gold low down $4.90) was primarily an issue of $US weakness – and the strength at present is the obverse. However with Indian premiums at this level, a serious retreat is difficult to envisage. (emphasis is mine)
In addition, the daily open interest report from the CME, found HERE shows that the open interest for gold declined by a surprisingly small 7.7 thousand contracts. Even more interesting was the fact that the open interest for the February contract actually increased by 3,903 contracts. This o/i report stands out because historically on a day when gold gets shot by the cartel for $40+, we would typically see a much larger o/i liquidation and would never see any single-month increase. February is the next “front-month” for gold after December.
In silver, the o/i declined by a surprisingly small 362 contracts. Again, historically on day when silver is hit for a buck, typical o/i liquidation would be 10x that amount. It would appear to those of us who have been trading/investing/observing the precious metals market for the duration of the bull market that it is possible, maybe probable, that opportunistic dip-buying is being front-run by the competition of a growing number of accumulators (i.e. strong hands) globally looking to increase or start core positions.