Dave Kranzler: Gold, Silver flow east as hedge funds short prices lower

Arcadia Economics, Released on 11/3/22

The Federal Reserve had its latest meeting on Wednesday, and as expected, raised interest rates by 75 basis points. Which was followed by a brief spike up in gold and silver, before an even bigger plunge lower. Yet as the market digests the latest tea leaves out of the Fed and tries to extrapolate what it might do next, the underlying conditions in the precious metals markets leave a muddied picture of where gold and silver are headed. So in today’s show, Dave Kranzler of Investment Research Dynamics talks about the positioning in the metals market, where the hedge funds continue to sell paper gold and silver, while the banks have covered their shorts, and the flow of physical gold and silver continues to head east. Which sets up an interesting dynamic, in that especially when the Fed begins to more overtly indicate a pause in its rate hiking cycle, there will need to be a lot of covering by the hedge funds. Especially if and when the dollar index begins to head back lower. It’s not the easiest of times in these markets, and there’s perhaps more uncertainty in the economy than most have seen in their lifetimes. But to find out what conclusions can be drawn from where everything currently stands, click to watch this video now!

Dave Kranzler spent many years working in various Wall Street jobs. After business school, he primarily traded junk bonds for a large bank. Dave graduated from Oberlin College with majors in Economics and English and he also has an MBA from the University of Chicago, with a concentration in accounting and finance. Currently, he co-manages a precious metals and mining stock investment fund in Denver. He has nearly thirty years of experience in studying, researching, analyzing and investing in the financial markets. His daily articles can be found at his site, Investment Research Dynamics.

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