Gold and silver markets are extremely tight. Tipping point is close

The tightness of the trading range grows by the day. As demand and supply come into balance it is rather like a see-saw where the weight is evenly distributed. When that happens and one adds the tiniest extra weight, the see saw is tipped, one way or the other. We need to know which side that tiniest of extra weight is going to be added.

Friday is usually the most frantic day of the week in New York so let's see if today will be.

Concern is growing over the state of the Indian Monsoon, which is 21% below the average. The gold buying public in rural India does not hold back sowing in the same way as the big commercial farmers elsewhere do. They just hope for rain and wait to get it. So does 20% less make a huge difference to the size of the crop? We will have to wait until late August to see. One has to remember that Indian investors have been out of the market because of high prices, so have a great deal of powder that's still dry. Their ability to buy is greater at this time of the year than in the past, but will they buy? The current Rs.87,000 per ounce has been a ‘floor' for some time now and they like a strong ‘floor'.