I’ve mentioned before that one of these days leading into option expiry, the delta-hedgers are going to be forced to scramble for cover. We are getting closer to that moment, so we need to start thinking about June contracts expiring at the end of May. The clue will be to watch how the spot price compares to June delivery and whether a deep backwardation develops, which brings me back to silver.
As if all of this about gold wasn’t bullish enough, there is the obvious strength in silver. The shorts can’t get it below $18. It is solid as a rock, so we may see a short squeeze in silver when the May futures go to
- Source, King World News