Gold Daily And Silver Weekly Charts - Forget Greece, Eyes On The Options

Today was certainly interesting.

Gold was hit fairly hard on the news that there is a 'deal with Greece.'

Stocks rallied, but then gave up quite a bit of it in the close.

And silver never really moved except for a little fakeout and then trended higher. What is up with that?

I think at least part of the reason is the huge open interest for gold in August. And the expectations of a China announcement in the Autumn about their official holdings.

The structure of the options contracts is rather interesting as well. There are quite a few option contracts in gold that are structured around the 1200+ level for the July 2015 calls as shown below.

I didn't see today as a fundamental move as much as a 'technical trade.' The Bucket Shop will have its due.

Have a pleasant evening.

Click on picture to enlarge