Seriously. There are 3 options expirations that effect the metals and miners. Futures (big honking contracts for the metals), options on those futures contracts, and then options on the mining shares (equities). Each expires on a different day in the month, and while they all are interrelated, the PMs pull on the miners is much stronger than the miners pull on the PMs.
Trading in the Sept PM options came to a halt as of the end of .... yesterday. It isn't uncommon to see the metal's price pull off some counter-intuitive stunt on the day of expiration (options are all about sharks & marks, and while the sharks are outnumbered, their size allows them to tip the scales in their favor month after month, much to the dismay of the marks).
Equity options (mining shares) expire on the 3rd Thursday of each month, so that was way back on the 15th. In the period between the 15th (equities expiry) and the end of the month (futures & future options expiry), the miners often want to "pull at the bit" but are also often held back by Titanic forces that would stand to lose lots if the metals took off. There is motivation to hold prices at certain levels until things expire in certain player's favor, followed by motivation to almost immediately shift the price to make re-entry by the marks be disadvantageous, followed the next day by a gut-check and flushing of weak-handed marks for a quick 2-day profit. So it's Make Them Pay, Put Them In A Bad Spot, and followed by Make Them Pay Again typically in a 3-day span near the end of every month.
So to sum up: I sort of almost *always* expect a disconnect between the miners and PM for the last week or two of each month, due to the nature of options expiration, the size of money and profits involved by the bigger players, and the seemingly blind regulators who ignore obviously manipulated markets.
That's all true and should always be considered, but currencies plays a large part in relations as well. On Monday, over 4 trillion dollars traded. A total of over than $1.5 trillion was spot transactions and $2.5 trillion was traded in outright forwards, swaps and other derivatives. I always compare futures with currency pairings.
don't think currency trading is for me, thanks for sharing your perspective on that aspect news
the pullback seems healthy enough, the metals are consolidating here, gold and silver each seem to want to move higher, EXK shares are consolidating too, we'll see soon what September brings, GLTA