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Today was a typical option expiration for the metals on the Comex. The test of the longs occurred yesterday, and after this morning it was taking profits and short-covering.

However, there will be an FOMC decision and press conference tomorrow, and the markets will be listening to what Joltin' Jay has to say, especially in regard to the new President's dictum for lower rates.

VIX fell.

The Dollar chopped.

More physical gold was drained out of the Hong Kong vaults, although they seem to be keeping up with it.

I used to pay more attention to the activity in the New York vaults, but they changed their reporting mechanisms somewhat radically a few years ago, in response to the observations that there was fairly little physical gold on hand.

Now it is almost impossible to determine what it is that they are holding that is genuine or merely paper.

Mission accomplished. 

So let's see what happens tomorrow.

In the meantime, gold prices hit a record high in China.

At some point the call will come, and NY and London will be weighed, and found wanting.

Just as it happened in 1971.

Have a pleasant evening.

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