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.

By Jesse

http://jessescrossroadscafe.blogspot.com

Welcome to Jesse's Café Américain - These are personal observations about the economy and the markets. In providing information, we hope this allows you to make your own decisions in an informed manner, even if it is from learning by our mistakes, which are many.

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