Physical gold continues to come out of the funds and trusts. Silver shows no such withdrawals.

When gold starts to rally again, that physical gold is going to have to be bought back, and probably at increasing prices on the market. Much of this physical gold has already made its way to the markets and vaults in Asia, and not likely to return anytime soon.

With regard to the commitments of traders, the readings for both metals are at some historical extremes, suggesting a rally ahead when the positions revert to the mean.

We have a slam dunk FOMC meeting and an options expiration on the Comex this week ahead, and another Non-Farm Payrolls report the following week.