Thursday, June 30, 2016

Silver is Golden ... or Gold has Lost its Luster (for today)

The last 2 days have been pretty good to silver's ETF (SLV) and pretty ordinary for gold ETF (GLD).  
Gold and silver, often joined at the hip, have disconnected from a price perspective ... and there's some interesting trading at the center of it.  Overall, silver is showing gold who's boss, disconnecting from gold for a 4.6% gain over the last two days.  

Is somebody (or some firm) keen on silver and not so keen on gold, or might a barrier have been tested on an option expiring at quarter-end?


We just moved into quarter-end, and both GLD and SLV moved slightly higher into the 4 pm close, on some synchronized, high volume (right around 3:59 pm).  

But perhaps the 3:33 pm move, unique to silver, (on high volume) is interesting.  Silver hits a peak at 3:33 pm, so perhaps a barrier was tested, say on a knock-in knock-out option.


You can see the additional volume spike in the lower silver graph -- but not in the gold above -- just before the close.


And this graph zooms in on the price movement (up) on the very short infusion of interest in the silver market at 3:33 pm today. It then losing some of its gains before pushing higher again into the close at 4 pm.


Graphs courtesy of Bloomberg LP.

1 comment:

aditi said...

This post helped me with useful information on forex trading. Learning helps in improving returns from the market. Traders can consider forex tips, MCX Tips as well to perform better.