Gold & Silver Soar As EFP Premiums Surge Again

Yesterday we talked again about the latest surges in the gold and silver EFP premiums, and I shared the interview about that with Bob Coleman.

As I was listening to that call again this morning, it was interesting in how Bob mentioned that despite the spike in the spreads between the spot market in London and the COMEX futures in New York, we still hadn’t yet seen much of an impact on the underlying price.

Although of course as you’re likely aware, we did indeed see that today, with silver up $1.27, and gold up $36.

Obviously the main catalyst was this morning’s CPI report, which came in less than the expectations (we’ll leave where those actually come from for another day), but still showed the core CPI at 3.2%.

However that was enough for the markets today, and both gold and silver have been soaring ever since.

Gold had already been rising in far east trading.

And here you can see how silver also took off right as the CPI report came out.

It was almost as if we were watching Trading Places when the crop report was released!

Now on one hand, the CPI report will normally have its impact on the gold and silver pricing.

Although I’ll reiterate what I’ve mentioned over the past month as the EFP premiums have surged, indicating stress in the market. And that’s primarily that when there’s market stress like this, the moves have an elevated probability of being larger.

Like what you saw today.