Both gold and silver were taken to the woodshed this morning following the opening on the Comex. However, the dip was a brief one and both came back with silver leading the way. Gold found substantial support at $1186, while silver bounced off its 200-day moving average again, making a $17.62 low before roaring back.

Gold reached $1200 and silver popped to $18.08 not too long before the Comex close.

The gold open interest went up 2027 contracts to 577,732, which means yesterday’s swoon was not just spec liquidation. The silver open interest is much more interesting, as it is collapsing. Yesterday’s went down 2314 contracts to 118,962. The gold open interest is not far from all-time highs. The silver open interest has crashed and is not far from recent lows. Perhaps there is some news lying in the weeds which is making the major silver shorts a bit nervous.