This is a bit stunning. The gold open interest only rose 8500 contracts to 388,333. On a near $70 move up from Comex close to close, that is next to nothing. We used to get open interest increases of 15,000 on a $5 move. Clearly this includes some panicked shorts who were forced to cover, but still, it is what it is … meaning there is room for slews of specs to pour in on the long side before the number gets excessive. As is, the gold OI is nearly 200,000 off its highs.

The silver open interest only went up 85 contracts to 92,570, which is even more stunning, as it leaves even more room for the traumatized silver spec longs to pile in and drive the price sharply higher. My guess is that the input we received yesterday that silver will explode, when gold takes out $1,000 and stays there for a few days, has some merit.