(Kitco News)-- Climbs in open interest suggest fresh buying in gold and silver futures lately, although some of Tuesday’s gain so far may be in the form of short covering, says George Gero, vice president with RBC Capital Markets Global Futures. Covering is a form of buying to offset short positions in which market participants previously sold.  The number of Comex open gold-futures positions on Friday rose from the previous day by 2,693 lots to 584,722, and they were up from 565,117 the prior week. Silver open interest gained 4,531 lots Friday to 138,248, and the total was up from 130,072 the previous week.  Renewed concerns over European banks prompted another round of buying in gold early Tuesday, Gero says. “If we see a decisive close above $1,260, I’m going to look for $1,275,” Gero says. “And if December silver closes over $20, I’m going to look for $25 silver down the road.” Around mid-morning, December gold was up $7.10 to $1,258.20 an ounce and peaked at $1,261.60. December silver was up 6 cents to $19.955 and peaked at $20.045.

By Allen Sykora, of Kitco News; asykora@kitco.com

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