this is what bill murphy of gata had to say about today's trading in gold and silver

A superb day for us gold and silver bulls. The Gold Cartel went to work a little later than usual, following a stupendous AM Fix of $1047. By the time trading commenced on the Comex, both gold and silver were slightly lower to flat. Yet, despite a stronger dollar, with the euro down .0045 most of the day, the relentless gold/silver buyers were out in force … with silver leading the way up. One more time … a weaker dollar is very gold friendly, but it is not the key to this market … the physical market versus The Gold Cartel is … and right now the bad guys are getting their butts kicked.

We have a Holy Moly here! The gold open interest shot up a staggering 32,955 contracts to 484,307, which reveals just how badly The Gold Cartel doesn’t want the gold price to be doing what it is. Much of that selling yesterday was right above James Mc’s 2% allowable trading limit for the day. Geithner, Bernanke, Summers & Co. must be having fits.

While the open interest increase was huge, the total amount of OI is over 100,000 fewer contracts than when gold was last at $1,000, so there is plenty of room for more specs to pile onboard. We are getting closer and closer to our long awaited Commercial Signal Failure. Dave from Denver notes…

I wanted to add that over 26k of the increase in gold o/i was in the Dec '09 contract, indicating that a lot of specs/investors think gold is going run. I believe, based on the color Ron Kirby shared with Midas last night about the situation with gold deliveries, based on recent experiences I have had trying to get silver deliveries from Comex, that if enough of the December longs want delivery - and that's delivery that they take off-Comex into to their own custody and safekeeping, that the Comex will default on its gold contract.