gold

Trading remained quiet also during European hours yesterday and the few highlights were sell stops that were hunted in Gold at 1665 or Silver below 32, before going quiet again. Our own Gold ETFs reported an increase in holdings by 1.6 tons or 52'000 ounces. Switzerland got a new LBMA approved refiner on the good delivery list. Précinox SA, who are situated in La Chaux-de-Fonds and have their roots in the field of semi finished products for the watch industry. Options talk on Comex were the April 1800/2000/2200 butterflies that were apparently bought in size. Analyzing the open interest we see an increase of 650'000 ounces in 1800 calls, 550'000 ounces in 2200 calls, but a drop of 520'000 ounces on the 2000 call. The options will expire on 25th March, which are pretty bullish bets that some are putting on. We also looked at Options expiry tomorrow, where the largest nearer strikes are the 1650 with 910'000 ounces of total open interest and the 1700 strike with 850'000 ounces. The largest open interest is on the 1600 strike, with 1.1 Mio. ounces. Tonight will see the FOMC rate decision announced and Bernanke to speak, which might keep markets to trade on the sideline and wait for any hint on Quantitative Easing.