Summary

• Gold has found a nice consolidation zone, oscillating between $4600 and $4800. During this time, delivery volume has slowed some. March is a major delivery month for gold and delivery volumes hit the lowest level since October 2024.
• While the gold market is showing a futures price that is getting higher above the spot rate, the silver market is experiencing the opposite problem, backwardation. The spot price is above the futures price. This is a bigger warning sign because it highlights the pressure being put on the physical market.
• Now that both metals have gone into a consolidation zone, a buyer or group of buyers is happy to let the metal consolidate for a few months while they continue to take ownership of physical deliveries. If they moved faster, it would create a price spike and bring momentum traders back in.
• However, if I want to accumulate physical, then I want to do so without moving the price or spooking anyone. And that is exactly what is happening at the Comex right now.

The CME Comex is the Exchange where futures are traded for gold, silver, and other commodities. The CME also allows futures buyers to turn their contracts into physical metal through delivery. You can find more detail on the CME

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