Gold Demand Collapses as Silver Firms Up; 400-Ounce Contract Removed

The Comex Exchange has seen significant changes in gold delivery volumes and inventory levels. Since January 2025, the market has witnessed elevated delivery volume far surpassing previous years, but this trend suddenly stopped last month. In fact, delivery volume for September is half of what was seen in the quietest month since 2024.

The removal of the 400-ounce gold contract on the Comex, which had zero open interest, has been shut down and the associated vaults holding 400-ounce bars have been removed. This indicates that when the market is under stress, the Comex may find its vaults getting drained quickly.

Looking ahead to October delivery, the gold contract is well below average and near the bottom of the range as the roll date approaches. In contrast, silver demand has firmed up, with a strong open interest count approaching the minor silver month.