taking delivery

Richard Guthrie

Wondered why 1775 has been defended with the passion of a Greek Bridge in the last few weeks,..

Of course, of course, Option expiry on the Oct Gold Contract today,

Looking at the Call Open Interest yesterday at Strike Prices around present spot levels, one can see why the Option Writer’s were so keen to put a stop to Friday’s breakout higher,

Note the heavy concentration of Open Interest between 1775 and 1800! Had the market held it’s highs on Friday into the close, it would have likely set up a run over 1800 into today’s close, which would have put another 14,000 Calls in the money at expiry! 14,000 calls is an eye watering 1.4 million ozs of Gold equivalent (circa 44 tonnes),

Now you know why 1775 these last few weeks has been defended with absolutely everything the b*stards can throw at it,

My guess is that once expiry’s through today the pressure’s off which might very well mean a quick rebound to new multi-month highs!
Best,
Rich (Live from 'The Bridge of the Silver Rocket Ship')