2012-05-23gotgoldreport.com

According to the CFTC, as of Tuesday of last week, large traders the CFTC classes as Managed Money ("MMs," hedge funds, commodity trading advisors and other funds that trade futures on behalf of others), increased their short positions in gold futures by 9,837 contracts to show 32,822 contracts short.  That is the highest pure short position for the "funds" since September 16, 2008, during the height of the 2008 panic with gold then in the $770s.  One week later, on September 23, gold closed at $891.90, about $122 higher as the MMs covered or offset more than 20,000 of those short positions (not a misprint).   

... look at the graph above and note that the spikes to the upside for [short positions] often correspond closely with bottoms in the price of gold... Higher short positions are "buying pressure in a bottle" more or less.



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