It looks like the predictable has happened (again) and the squeeze on the closing COMEX gold contract is evaporating in front of our eyes . If anything, it has happened a little faster this time because the US futures traders want to be out of December before the holiday on Thursday.
Since 10 November, 615 tonnes of December "paper gold" has ceased to exist. 109 tonnes of it was converted into physical gold through off market EFP transactions (in the last six trading days that I have watched*). 418 tonnes of it was replaced by February "paper gold". I expect that by next week there will be 18-20 tonnes left that will go to delivery through the normal CME settlement process. The balance is probably close outs of day trading positions.
