Modest overnight trade with the bias on the easier side; the straight forward notion is that bulls just plain failed yesterday to scale the seductive peaks visible in the mid-$1440s. Fortunately gold can give us second chances that life and love often deny, so let's deal with the facts. GSR's cup continues to runneth over ~37.50 in spite of dark tales of a mysterious silver 'crater' circulating within the opaque and impenetrable world of those who are truly short physical. RSI remains encouraging. Gold open interest basis Friday, that incorporates the trip to the woodshed administered after NFP, actually rose ~1,000 contracts countering media analysis of heavy selling. Option vols however are slumbering ~13.00 as low as we have seen them this year and frankly hardly a touchstone for buyers expecting to see new highs and possibly expressive of higher margins on futures. Today...Central Banks are playing good cop, bad cop as rates ascend and should provide buying support at least to yesterday's resistance.
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