Open Interest In COMEX Gold Futures Hit All Time High At 603,094
Comex is reporting that as of June 18, the open interest in gold futures surpassed 600,000 only for the second time since May 17, hitting 603,094 lots. COMEX gold open interest climbed 5,712 to 603,094 lots on Friday, surpassing its previous record of 601,014 contracts set on May 17, Reuters notes. On Friday gold closed at an all time high price just shy of $1,260. Reuters reports that according to analysts, a "record open interest, an indicator of overall market trading activity, could lead to increased volatility in gold futures." Little did analysts realize just how prescient they would be with this simplistic summary, on a day when a commodities fund is rumored to be in its death throes, leading to a major drop in spot gold. Also don't mind opex: that's completely irrelevant.
We will report on the latest holding of the GLD, which as disclosed on Friday when we first reported about Saudi Arabia's doubling in gold holdings, is now the 6th largest holder of gold (some would disagree) in the world, bigger than all of China, later today, and everyday, when the updated NAV comes out.
In other news, post today's "murder", gold is back to Thursday levels. After all, hedge funds can't always liquidate their holdings in the desired direction.