Futures Expiry Triggers Gold, Silver Markdowns

The recent sharp markdowns in paper gold and silver prices have been attributed to the expiry of futures contracts by Alasdair Macleod. According to him, institutions including swaps and bullion banks are seeking to reduce their short positions and go long between London and Comex.

Macleod explained that these entities can 'print' contracts at will to remove buyers, leading to price movements disconnected from the underlying physical metals.