by Alasdair Macleod, Gold Money:

The rise in the gold price ran into profit-taking on Wednesday. Having risen $160 to $1345 some short-term profit taking is only to be expected, and silver followed suit.

The action in silver revolved round the March contract on Comex, with some players choosing to close their positions rather than roll it into a later month. This action can be clearly seen in the chart below.

Open interest (the blue line) fell off a cliff on Wednesday, which must have pleased the bullion banks, who are trying to control their short book, as can be seen in the following chart, of the largest four traders on Comex (a.k.a. bullion banks).

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