Gold Shorts Plunge To 5-Year Lows

Tyler Durden's picture

Despite the record highs in stocks (and consumer confidence), a 'resurgent' economy, tax reforms, rate-hikes, and deregulation; traders are adamantly opposed to shorting precious metals...

As Bloomberg points out, hedge funds and other large speculators pared their bearish position on bullion futures and options to a five-year low last week, driven in part by looming geopolitical risks from North Korea and the U.S.

For those who suspect 'manipulation' in gold prices, a glance at the total capitulation of speculative gold short positions (compared to the 'unch' nature of spot gold prices) in the last few months provides some food for thought.

While gold prices have shown signs of fatigue, falling for a second straight week, the metal rose Friday as turmoil in Washington boosted its appeal as a haven... only to fall back overnight as ABC's fake news was exposed...

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YUNOSELL's picture

What's a matter bitches? What are you afraid of? Starting to lose confidence your manipulations are having any potency perhaps?

BaBaBouy's picture

HUH? Commercials Shorting Looks Alive And Well To Me ...

http://www.cftc.gov/dea/futures/deacmxsf.htm

Pandelis's picture

bitcoin is the thing to watch nowdays ...

WTFRLY's picture

and the Joomanji is almost here

Fizzy Head's picture

PAPER Gold shorts plunge to a 5 year low. FIFY.

 

Make no mistake about it my fellow patriots, phyzz owners don't "Short" gold..............and bankers are nothing more than thieves for doing this.

 

ExplodingEntropy's picture

Dude, i know phyz investors would love to loan it out for the people who do short it. Might as well get fees and eat it too

anarchitect's picture

Yes, the article is about speculative shorts.  Commercials are not speculators because their gains are practically guaranteed.  They can collude, exceed position limits, and hold large naked short positions.  Regulators would not tolerate the behavior in the PM "markets" anywhere else.

actionjacksonbrownie's picture

Exactly - since when did the specs influence the price??? Large commercials are close to record short positions.

c2nnib2l's picture

I was expecting slightly bigger drop in Gold today .... perhaps it's all the Gold Bears Got 

 

look at the dollar looks like shit ... we might be heading for a slide at the end of this week

 

gold looks strong for 2018

Bill of Rights's picture

Dollar Looks like shit? looks stable at the moment...

 

https://s3.amazonaws.com/tradingview/snapshots/l/LTYNtYU0.png

 

I like Gold but my fan boy status has waned

c2nnib2l's picture

I'll wait till the end of the week before I'll make another bet. But I really think Dollar will hit $ 90 in the 1st quarter of 2018 (if not lower) 

Bill of Rights's picture

Good call I actually thought we would have bounced to 96 ...but hasn't materialized.

Silver Savior's picture

Yep the dollar looks like shit and is not even backed by a turd.

Muslimania's picture

a turd = the good faith and effort of the united states governmint.....

chubbar's picture

Trying to figure out what the price of gold should be in a world where fiat money is being printed by the billions yet compared to each other in an index that just moves incrementally while the total of the fiat money supply grows exponentially against the total supply of gold is fucking ridiculous. No one should believe that the dollar should be remaining strong against the price of gold under this system. The fact that the elite have completely brainwashed the masses into believing this bullshit isn't particularly surprising.

The fundamentals are so strong at this point for a gold price explosion that even the dumb money is afraid of being short. The commercials, whom always seem to be on the correct side of the trade, are in fact largely the bullion banks in charge of this charade. It's not unusual to see them toeing the line on suppressing the gold price through unbacked futures regardless of fundamentals. I don't think anything changes until the system breaks, so I don't put too much value in whether the speculators are long or short.

Right now, the COMEX is laying off longs standing for delivery to London where the delivery rules are much more opaque. The back log on delivery is reportedly at 13 weeks with backwardation in both silver and gold. The system is showing the stress of having strong gold demand with short supply but it isn't being reflected in an appreciating gold/silver price due to systemic suppression through naked shorting. We'll see if this plays out with the system collapsing/defaulting OR if demand abates and the system gets back into more of an equilibrium between supply/demand. One thing can be seen for sure though, the old supply/demand equation doesn't seem to be operable when it comes to these two precious metals.

LawsofPhysics's picture

Correct.  By the way, the Central Bankers are also doing a similar thing with oil. The problem of course is that oil has considerable more utility than PMs and oil MUST keep flowing...

Interesting times indeed.

Fahq Yuhaad's picture

@chubbar

Alasdair Macleod: FMQ fiat money quantity appears to be stalling after exponential rise:

https://www.goldmoney.com/research/goldmoney-insights/monetary-update-fo...?

Fizzy Head's picture

the article explains what most americans are feeling in their pocket book. . .. .. .. poll >

 

<broke way before get paid

<have money left over before get paid

SRV's picture

That's what BC is for... funneling billions out of the gold market (individual buying)... one day we'll find out who really developed blockchain, and it wasn't some guy in a basement.

0valueleft's picture

Play us a tune Nero.

lester1's picture

Bitcoin will be shorted once these futures exchanges open.

NoCamelCase's picture

they will short much higher to maximize profit and minimize risk

SRV's picture

Well, since every COMEX futures contract must have a "long" and a "short" that's a pretty safe bet (I thought this was a financial blog)... lol!

And this story is beyond misleading, so what's going on here? A careful read has "The Speculators" (Hedge Funds) giving up shorts... but it fails to report that the Bullion Banks (JPM) bought them all, so the overall market didn't change at all (Specs go longer as they are always long) and the Banks go shorter (always short). Oh yeah, and guess who 'wins' every time...

And... historically the more shorts JPM has, the LOWER the price goes, and the current structure is massively bearish... whats up with that ZH... just picked up a bad report somewhere?

Here's the last Commitment of Traders report data in a chart... as you can see, the L/Shorts are symmetrical (the high number of open contracts is bearish).

http://snalaska.com/cot/current/charts/GC.png

 

jmack's picture

I am looking for gold to test 1265 today, we will see if it holds or not.  may trade in a fairly tight range today, and test that low tonight or tomorrow though.

Son of Captain Nemo's picture

I'm not concerned... I dumped all of my "phyz" for a digitally encrypted packet worth $11,000 that sits on a server in Ft. Mead Maryland with a backup "key" at 1111 Constitution Avenue!...

How's that for a "safety deposit box"?!!!

Son of Captain Nemo's picture

Shitter

You can run... but ya can't hide... brotha!

My advice to you given the current landscape (http://www.zerohedge.com/news/2017-12-03/were-getting-close-military-con...) (http://www.zerohedge.com/news/2017-12-03/former-us-defense-secretary-exp...) is that you enjoy some or all of those earnings before it's too late!...

Why don't you go down to the Caribbean and "kill 2 birds with one BTC" by buying up some real cheap hurricane damaged property and at the same time be philanthropic and fund some that torn apart economy with "sundries"?!!!

CHX13's picture

There is an infinate supply of paper gold provided by the dark lord$. But the actual pet rocks, not so much. 

joego1's picture

The beatdowns will only end when the cabal is on the ropes.

Ignorance is bliss's picture

The beat downs will only end when the cabal is swinging at the end of a rope. There, fixed it for you

Yellow_Snow's picture

On the verge of Nuclear War...

< CLEARANCE SALE >  'Pet Rocks' --> $1276    Down $6

0valueleft's picture

You and Bill Griffeth, ticker parrots, no cracker for you.

wonger's picture

Net non commercials are 224k long, they were 316k long 05/07/2015, they are 1/3 down since their high on 05/07/2015, this article is nonsense!

BurningBetty's picture

They have been beating any upswing in gold now for 5-6 years. Clubbing investors down to the point where you realize; I ain't touching that. So no big shorting of gold is neccessary any more.

It's like that trick with the elephant or a grasshopper. With the elephant, you tie him to a pole. After a while, he will simply stop trying. At that point, all you need is a pole, no rope is neccessary. In his own mind he has made himself a captive. The grasshopper you catch in a jar. As he is trying to jump out time and time again, he will realize that hitting the damn lock hurts. After long enough time, you can open the jar and the grasshopper won't budge. 

So what we now have in PMs is clubbed down investors who have no interest in gold or silver anymore. The Central bankers literally got their way.

Pearson365's picture

Total capitulation is bullish

Give Me Some Truth's picture

Right. The program to "kill" any and all positive sentiment for gold and silver has been successful. This, I submit, was done by design. This was the goal, a goal that has been achieved.

Now that sentiment for gold and silver has been slain, they just have to make sure this sentiment does not rise from the dead.

everything1's picture

I think it's an EOY trend.  Silver will get a dip closer to EOY and usually pull out strong through theh first couple of months.  Gold price has found it's new home, 1250-1300.  Gold is a global commodity, and with real negative interest rates it will not be shorted!, free money/winnings and the ensuing inflationary risk behind that large government trend will keep demand flying high, and the amazon forests being chewed up as they go for the easy stuff near the topsoils.  It's to bad really.  I'm hoping for an interest rate bump to hold gold down so I can pick up another oz. or two in the near future. 

oobilly's picture

More about the bond market I think.

Dragon HAwk's picture

The Nice thing about a Big Container of Dry Powder, is that every time they want to make a Bet you just reach in, Scoop a Bit out, and Call their Bluff.

QuarkJaguar's picture

Wtf, there is no easily mined gold. I lost more than 10kgs and several hundred of silver, airplane accident. Enjoyed the recent zh commentator that said cancer treatment had been found yet involved a lot of the shiny stuff. There is no such thing as intrinsic value of a pm. Fuck the future, heard that in a song.

Fahq Yuhaad's picture

On the first reading of the title I missed the "shorts" bit

QuarkJaguar's picture

Your good girl Christian name arouses me, bitch.

FreeNewEnergy's picture

I'm looking for silver below $16. The trend is obvious.

Central bankers really, really hate silver, even more than gold.

They want everybody to be poor.

Fuckers.

resistedliving's picture

opposed to going Short and being Long are different things

Long and Strong

rl

JibjeResearch's picture

Gold?

Bwaha aha hah ahahhahahahhaah

 

Go get rich with Tezos Cryptocurrency, you fool..............

https://www.reddit.com/r/tezos/comments/7ga9m1/estimating_tezoss_price_a...

https://tezoschain.io/

 

MrBoompi's picture

They need to sucker more people into going long.  Anyway, the smart people who can actually trade on gold futures know you should buy right after the NY "fix" and sell right after the Asia "fix".  Do this every day and things seem to work out quite well.  The very large players who manipulate the gold market don't seem to be in it for the profits as they will gladly take a big loss to force the price down where they want it.  

olibur's picture

BRICS is setting up its own psychical gold trading system with its own price discovery without crooked one of the West. Keep stacking.

Give Me Some Truth's picture

Just ask yourself one question: What would happen to the Powers that Be if gold and silver were NOT being pushed down? If silver soared through $18.50? And kept going up?

Would this send a "signal" that maybe all is not well in the macro-economy?

If they can (easily) prevent this signal from being broadcast, would they?