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Funds Cut Positions In Gold By 4% And Silver By 20% - Gold Positions At 3 Year Low

Tyler Durden's picture




 

From Gold Core

Funds Cut Positions in Gold By 4% and Silver By 20% - Gold Positions at 3 Year Low

Gold’s London AM fix this morning was USD 1,662.50, EUR 1,256.61, and GBP 1,021.44 per ounce. Friday's AM fix was USD 1,654.00, EUR 1,250.28 and GBP 1,019.60 per ounce.

Silver is trading at $31.24/oz, €23.73/oz and £19.29/oz. Platinum is trading at $1,577.75/oz, palladium at $680.30/oz and rhodium at $1,350/oz.

Gold rose $4.70 or 0.28% in New York on Friday and closed at $1,662.30/oz leading to a 1.24% gain for the week.

Gold has traded sideways in Asia and continues the pattern in Europe this morning relatively unchanged from Friday’s close and in a range between $1,661/oz and $1,666/oz. 


Cross Currency Table – (Bloomberg)

Gold hovered around a two week high on Monday on the prospect of more save haven money flowing into bullion as the dollar is under pressure from the US weak economic data and speculation that the Fed could embark on QE.

Although there are still doubts as to whether the economic slowdown will allow the Fed to embark on a 3rd round of bond buying - the expectations of it and in addition the growing fears of the debt crisis in Europe could lead to gold breaking out of its current price range.

The US economy, the world's largest, expanded at a 2.2% in the first 3 months of the year, below economists’ expectations of a 2.5% pace.  

Spain, the euro zone's 4th largest economy, has another bond auction this week after having recently been downgraded  2 notches  to BBB+ and saw yields increased on its debt.

Gold looks set to close April marginally lower (-0.3% in USD) although as can be seen in the chart below much of the losses were incurred in the sharp selloff, some $30, on April 3rd (see chart below).

CFTC data from Friday showed that money managers cut long positions on Comex gold futures and options in the week ended April 24 to the lowest level in more than three years.

Managed funds slashed 2,225 long positions, or bets prices will rise, and added 2,450 short positions, or bets prices will fall.


Gold 30 Minute Chart – (Bloomberg)

The managed-fund net long position was cut by 4% and now represents around 10.7 million troy ounces of gold.

This took their net position down 4% to 107,600 long contracts, from 112,275 long contracts. That's the lowest in CFTC data since the week ended Jan. 20, 2009.

The low in January 2009 corresponded with the low in the gold price for 2009 - monthly low of $807/oz - prior to seeing gains which saw the gold price rise more than 50% to above $1,200/oz in late November 2009 (see chart below).

A similar price gain would see gold rise from $1,663/oz today to $2,494.50/oz in the coming months.

Also of note is the fact that large commercial traders have greatly cut back their short positions in gold and especially in silver. This has often been a sign of a bottom and suggests that they do not expect gold and silver to fall much further.

In Comex silver futures and options, these traders added 248 long contracts and 2,883 short contracts. This reduced their net long position by 20% to 10,756 contracts, from 13,390 contracts the previous week. The net silver position represents around 53.7 million troy ounces of silver.

OTHER NEWS
(Bloomberg) -- Gold Traders Trim Bets on Price Rise, CFTC Data Shows
Hedge-fund managers and other large speculators decreased their net-long position in New York gold futures in the week ended April 24, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 134,994 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions fell by 7,011 contracts, or 5 percent, from a week earlier. 

Gold futures rose this week, gaining 1.3 percent to $1,664.80 a troy ounce at today's close. 

Miners, producers, jewelers and other commercial users were net-short 167,237 contracts, down 8,854 contracts, or 5 percent, from the previous week. 

Each Friday the CFTC publishes aggregate numbers for long and short positions for speculators such as hedge funds and institutional investors, as well as commercial companies that buy or sell futures to protect against price moves. Analysts and investors follow changes in speculators' positions because such transactions can reflect an expectation of a change in prices. 


Gold 5 Year Chart – (Bloomberg)

(Bloomberg) -- Silver Traders Trim Bets on Price Rise, CFTC Data Shows
Hedge-fund managers and other large speculators decreased their net-long position in New York silver futures in the week ended April 24, according to U.S. Commodity Futures Trading Commission data.

Speculative long positions, or bets prices will rise, outnumbered short positions by 16,471 contracts on the Comex division of the New York Mercantile Exchange, the Washington-based commission said in its Commitments of Traders report. Net-long positions fell by 1,936 contracts, or 11 percent, from a week earlier. 

Silver futures fell this week, dropping 1.0 percent to $31.41 a troy ounce at today's close. Miners, producers, jewelers and other commercial users were net-short 22,353 contracts, down 4,144 contracts, or 16 percent, from the previous week. 

Each Friday the CFTC publishes aggregate numbers for long and short positions for speculators such as hedge funds and institutional investors, as well as commercial companies that buy or sell futures to protect against price moves. Analysts and investors follow changes in speculators' positions because such transactions can reflect an expectation of a change in prices. 

(Bloomberg) -- Silver Holdings Heading for Biggest Monthly Drop Since October 
Silver holdings in exchange-traded funds backed by the metal dropped 0.5 percent this week and are headed for their biggest monthly decline since October.

Funds including iShares Silver Trust held 17,557.69 metric tons as of 5 p.m. today, down from 17,648.32 tons on April 20 and the biggest weekly decline since Feb. 17, according to data compiled by Bloomberg. The 1.1 percent decline this month would be the first this year and the biggest slide since October. 

(Bloomberg) -- IShares Silver Trust Holdings Unchanged at 9,552 Metric Tons 
Silver holdings in the IShares Silver Trust, the biggest exchange-traded fund backed by silver, were unchanged at 9,552.14 metric tons as of April 27, according to figures on the company’s website.

================================================================================

                  April 27   April 26   April 25   April 24   April 23  April 20

                      2012       2012       2012       2012       2012      2012

================================================================================

Million Ounces     307.108    307.108    307.108    307.108    307.108   307.108

 Daily change            0          0          0          0          0-2,718,365

--------------------------------------------------------------------------------

Metric tons       9,552.14   9,552.14   9,552.14   9,552.14   9,552.14  9,552.14

 Daily change         0.00       0.00       0.00       0.00       0.00    -84.55

================================================================================

NOTE: Ounces are troy ounces.
SOURCE: iShares Silver Trust

For breaking news and commentary on financial markets and gold, follow us on Twitter.

NEWS
 Gold May Gain for Fifth Day, Set for Longest Rally Since January - Bloomberg

Gold near 2-week high on dollar, US GDP data - Reuters

Agnico CEO Says Gold `Middle of the Bull Market' - Bloomberg

Europe’s Anti-Austerity Calls Mount as Elections Near - Bloomberg

COMMENTARY

McEwen, Crofton Debate Gold Standard Feasibility - Bloomberg

Do Central Banks Still Love Gold? – Resource Investor

Eric Sprott: "When Fundamentals No Longer Apply, Review the Fundamentals" – Zero Hedge

Gold's Value Today - Azizonomics

Gold and Silver Disaggregated COT Report (DCOT) for April 27 – Got Gold Report

 

 

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Mon, 04/30/2012 - 07:20 | 2384558 paulypaul
paulypaul's picture

Quick... churn your account.. do something...

Mon, 04/30/2012 - 07:25 | 2384562 maxmad
maxmad's picture

weak hands!

Mon, 04/30/2012 - 08:17 | 2384627 GetZeeGold
GetZeeGold's picture

 

 

When stupid meets spaz.

 

Mon, 04/30/2012 - 13:24 | 2385492 Bicycle Repairman
Bicycle Repairman's picture

Keep shaking that money tree until some gold falls out.

Tue, 06/19/2012 - 11:15 | 2539519 Nagelstudio
Mon, 04/30/2012 - 07:21 | 2384560 firstdivision
firstdivision's picture

Some people losing faith in Banana Ben's mystical QE3 making an appearance?

Mon, 04/30/2012 - 07:26 | 2384564 Sudden Debt
Sudden Debt's picture

Smart! Turn your assets into endless printed paper!
I guess that what they teach you in Phd school...

Well... Assets... It's just paper silver and paper gold so it's like the same as dollar bils.

Mon, 04/30/2012 - 07:30 | 2384567 writingsonthewall
writingsonthewall's picture

You can't wipe you ass on Gold!

 

This is the true value of FIAT currency.

Mon, 04/30/2012 - 07:33 | 2384570 agent default
agent default's picture

I personally find both the USD and the EURO very wanting even as toilet paper.

Mon, 04/30/2012 - 08:19 | 2384637 GetZeeGold
GetZeeGold's picture

 

 

Go ahead and burn that sh!t.....cause I don't want it back.

 

Mon, 04/30/2012 - 07:26 | 2384566 writingsonthewall
writingsonthewall's picture

This sounds like 1 of 2 scenarios

 

1) They expect interest rates to rise

2) They are trying to squeeze the market to convince people Gold is in a bubble.

 

The bubble of Gold is exactly offset by the contraction in value of FIAT currency.

 

One will not be resolved without the other. It doesn't look like the world is prepared to give up on FIAT just yet - so the Gold 'bubble' continues.

 

Of course there is no phrase for the price of Gold AFTER FIAT collapses - it won't be a bubble then - will it?

It will be salvation - not speculation which ensures Gold does no pop.

 

Remember, the 'man on the street' hasn't got into the Gold bubble yet - pawn (or porn) shops are covered with 'men in the street' trading their gold for cash.

 

It won't be a true bubble until your taxi driver is telling you to buy - and he has some in the boot! (sorry - trunk for Americans)

Mon, 04/30/2012 - 07:46 | 2384588 Pete15
Pete15's picture

If these pros feel interest rates will go up I feel sorry for their clients. Fundamentals will always be smarter than your average money manager. Its Fight Club bitchez nut up or shut up. 

Mon, 04/30/2012 - 08:04 | 2384603 kralizec
kralizec's picture

I'll go with squeeze.

Mon, 04/30/2012 - 07:35 | 2384573 Freeman-S-Stratos
Freeman-S-Stratos's picture

More for me... 

Mon, 04/30/2012 - 08:04 | 2384604 kralizec
kralizec's picture

Yup.

Mon, 04/30/2012 - 09:32 | 2384783 fockewulf190
fockewulf190's picture

Paper schmaper. I'm stacking real money every month and don't give a flying frack about the COT and the scammers running the paper casinos. Paper price goes down, I get more Phyzz. Paper price goes up, I get less. But no matter, your not going to see any of my rounds or bars shrink flash-crash like to a fraction of it's physical size inside of a few minutes. Maybe I"ll rejoin the paper game after the Great Reset....but sure as shit not now.

Mon, 04/30/2012 - 07:38 | 2384576 HomeBrewPrepper
HomeBrewPrepper's picture

Pog has held up well, considering. I'm buying miners and junior miners that are beaten down as of late, and junk silver.

Mon, 04/30/2012 - 08:20 | 2384638 Non Passaran
Non Passaran's picture

Same here, I've been all in as od lately,

Slightly OT: another reason to be bullish is that at least some tea partiers are now on the banksters' side: http://www.bloomberg.com/news/2012-04-30/tea-party-congressmen-accept-ca...

Mon, 04/30/2012 - 07:39 | 2384578 VonManstein
VonManstein's picture

i think what we should understand from this is..

"Funds Cut Positions in Gold By 4% and Silver By 20% - Gold Positions at 3 Year Low" ... well above where it was three years ago.

same for silver.

the market is going up. there is lots of real buying these guys arnt the only playes in the market otherwise gold and silver price would have also have collapsed to three year lows.

the tide is rising and the physical market in both metals is gonna overwhelm the price.. these funds and specs are just jumping on and off a moving train. they will come back on shortly..

perhaps this all signalls a bottom? donno but neither metals are going much lower.

Mon, 04/30/2012 - 07:47 | 2384589 VonManstein
VonManstein's picture

ignore my retard typos please folks... my small brain gets a little too excited sometimes.. either way.. spec at 3 year lows yet gold well above price seen three years ago.. pretty obvious whats happeing here

Mon, 04/30/2012 - 07:41 | 2384583 The Swedish Chef
The Swedish Chef's picture

"CFTC data from Friday showed that money managers cut long positions on Comex gold futures"

 

Yeah, who likes to get MFGlobal´ed? 

Mon, 04/30/2012 - 08:20 | 2384640 GetZeeGold
GetZeeGold's picture

 

 

FREE JON CORZINE!!!!

 

Oh wait....he is.

 

Mon, 04/30/2012 - 08:40 | 2384679 The Swedish Chef
The Swedish Chef's picture

I don´t understand why everybody blames him for the customer funds being lost in tragic boating accident. Haven´t we all had them?

Mon, 04/30/2012 - 09:01 | 2384690 GetZeeGold
GetZeeGold's picture

 

 

......and the band played on....and Jon relocates to France on advice of counsel and Roman Pulanski.

 

Mon, 04/30/2012 - 07:52 | 2384593 orangegeek
orangegeek's picture

Elliott Wave count still shows gold as long term bearish.

 

http://bullandbearmash.com/index/gold/daily/

 

This site will also notify you by email when charts are updated:

 

http://bullandbearmash.com/members/signup/

 

 

Mon, 04/30/2012 - 08:12 | 2384618 CryingBear
CryingBear's picture

everyone knows gold is long term bearish.

Mon, 04/30/2012 - 08:15 | 2384624 The Swedish Chef
The Swedish Chef's picture

Everyone?

Mon, 04/30/2012 - 08:30 | 2384646 GetZeeGold
GetZeeGold's picture

 

 

Just the talking heads on CNBC......it came across the teleprompter so they had to say it.

 

Mon, 04/30/2012 - 09:36 | 2384786 francis_sawyer
francis_sawyer's picture

Peddle that EW bullshit elsewhere... Like on one of the million other internet sites that all have charts with the author's own counts on them (all of them different)...

~~~

You people remind me of that scene in 'The 12 Monkeys' where after the book signing, the professor comes up to Madeliene Stowe & asks if she's familiar with his own research...

Mon, 04/30/2012 - 08:14 | 2384620 Non Passaran
Non Passaran's picture

EW? Puhleeeeze.
My uncle Benny said he and friends will keep printing.

Mon, 04/30/2012 - 08:23 | 2384648 Jack Sheet
Jack Sheet's picture

Yes, well we all know that RN Elliott died a billionaire /sarc

Mon, 04/30/2012 - 07:52 | 2384594 _underscore
_underscore's picture

They [the 'Funds']  must think it's all fixed (or becoming more so..) then. I find it fascinating that gold/silver buyers in less wealthy countries are still buying gold - even at what must be a considerably larger

percentage of thier their actual income, per annum,  than 'rich' Westerners. The same goes, of course, for their respective CBs & other large institutional buyers. What value can they discern (even at the relatively higher prices for them) that  we (the 'West') can't?  I don't know, but presumably they have their own logic in this. For me, (still a relatively rich westerner) gold is effectively, for the effort in terms of work I have to provide per ounce, cheap & I regard this as an historic opportunity for myself. Historic, because I think that window of opportunity is closing. Why we in the West seem to think we have a right to have a higher standard of living per unit of real work produced is mystifying, but its slowly reversing - becoming more equable as globalisation works its magic. Our 1st mover advantage is coming to an end & if we don't capitalise on having a vastly over-valued currency now it may be too late to lock that wealth in, at least for the average Joe like me that is.

Mon, 04/30/2012 - 08:22 | 2384643 Jack Sheet
Jack Sheet's picture

"the funds" are trading paper metals on the Crimex. You may be confusing this with purchases of physical metal .

Mon, 04/30/2012 - 12:40 | 2385311 Kelley
Kelley's picture

Well, that may be, but have you ever been able to sell your PM's to a dealer for a price higher than what the CRIMEX says the paper price is?

I'd like to know how it works that we little people get the true value for our stuff?

Mon, 04/30/2012 - 14:52 | 2385922 Bohm Squad
Bohm Squad's picture

Ebay.  When everyone wants to "invest" in silver & gold, getting a premium from ebayers won't be a problem (since it isn't now).  Silver Eagles selling for more than Apmex charges...same for 90% coins.  Apmex is also showing a buy premium for American Eagles (above spot).

Mon, 04/30/2012 - 16:23 | 2386278 RockyRacoon
RockyRacoon's picture

I'm planning on your being right.   Establish a track record of honest sales with good feedback by selling some base metal coinage (mint sets, foreign coins, and such) and then, when TSHTF, bring out the good stuff.   That's my plan.   Wish me luck....

The problem will be what to do with all that fiat currency and where to move it quickly enough into other hard assets before it inflates away right there in your hands.

Mon, 04/30/2012 - 14:48 | 2385910 Bohm Squad
Bohm Squad's picture

SLV is down...PHYS is up on the day...the real story.

Mon, 04/30/2012 - 09:01 | 2384675 IBelieveInMagic
IBelieveInMagic's picture

Truth be told I am skeptical of Gold and Silver becoming pre-eminent asset and store of value. The OECD countries (swappable currency countries) would loose big time if PMs become the currency underlying global trade and trade for natural resources. TPTB will not let this happen without a fight -- just see what happened in Libya. The only time PMs may become pre-eminent is if TPTB decide it should be so and that would happen only when Gold bugs give up -- the TPTB will decide whatever is going to be the foundation of the next financial system and that will become valuable. Imagine, if gold were to become the valued asset, it would invert the current pyramid -- India would become the richest country! Ain't happening -- might is right, Food-Energy-Defence, the foundation of power.

Mon, 04/30/2012 - 09:38 | 2384795 francis_sawyer
francis_sawyer's picture

You assume TPTB know what the fuck they are doing and that controilling 7 billion people is so easy...

If that were the case we'd all be wearing togas...

Mon, 04/30/2012 - 09:58 | 2384850 DosZap
DosZap's picture

TPTB will not let this happen without a fight -- just see what happened in Libya.

In this case the TPTB's have to play together in the sand box, Libya,did not have nukes the folks setting up the new trading blocs sans USD's DO.

BIG DIFFERNCE................

Mon, 04/30/2012 - 13:36 | 2385577 IBelieveInMagic
IBelieveInMagic's picture

Agreed. But the cost in blood and treasure to break free from the current system is very high. MAD is what is keeping everyone playing and that is what is ensuring gradual reduction in standard of living in the OECD while gradually improving in the other big players. Break out of bilateral trade is more likely outcome rather than re-establishment of PMs as currency of trade. We have to realize that imposing a rare metal restricts the ability of the other large players as well...

Mon, 04/30/2012 - 13:38 | 2385586 IBelieveInMagic
IBelieveInMagic's picture

Duplicate

Mon, 04/30/2012 - 07:58 | 2384597 CryingBear
CryingBear's picture

its because gold and silver crashes in may.

Mon, 04/30/2012 - 07:58 | 2384598 eddiebe
eddiebe's picture

This is very bullish, especially for Silver.

Mon, 04/30/2012 - 08:04 | 2384602 Gringo Viejo
Gringo Viejo's picture

Long gold cut 4%.

Long silver cut 20%.

Silver is the paperboys' achilles heel.

Doesn't matter what these fading fraudsters do, the real metals are headed East and just like the American jobs that headed East, they ain't comin' back.

Mon, 04/30/2012 - 08:12 | 2384617 Quinvarius
Quinvarius's picture

CME is losing paper business due to how they handled MF Global.  You can't advertise an insurance fund of 6 billion and then refuse to pay it out.  Using CME paper is unacceptable risk.  You have to own the real thing and that will never show up in OI.

Mon, 04/30/2012 - 09:55 | 2384842 Haole
Haole's picture

"You have to own the real thing and that will never show up in OI."

 

So perfect in it's simplicity.  Always enjoy your comments Quinvarius.

Mon, 04/30/2012 - 09:13 | 2384735 Ignorance is bliss
Ignorance is bliss's picture

We can take the short sited view that our bankrupt PTB can continue to manipulate the price of Gold and Silver and push worthless fiat out to the rest of the world. However, my timeline is 15-20 years form now. There is no doubt in my mind that the U.S. petrodollar will be a thing of the past, the setting of Gold / Silver prices will be a thing of the past. We will be a faded superpower. The Global structure will be more balanced betwn. China, Russia, U.S., India, and the second tier Brics. The rest of the world considers Gold and Silver a store of value. The stock / bond markets are essentially bets in a global casino.

Mon, 04/30/2012 - 11:41 | 2385136 trembo slice
trembo slice's picture

I think your timeline is optimistic.  Other than that I agree 100%.

Mon, 04/30/2012 - 09:14 | 2384737 MrBoompi
MrBoompi's picture

While the US sells emormous quantities of paper metal and the prices drop accordingly, China and India quietly thank us by buying the dips, making it easier to make the payments for Iranian oil.

Mon, 04/30/2012 - 09:17 | 2384746 junkyardjack
junkyardjack's picture

Ruh roh raggy

Mon, 04/30/2012 - 12:28 | 2385278 AnAnomalous
AnAnomalous's picture

Making the funny are you of Chinese citizenism mode of speaching?

Ha!  Make me chuckle!

Go the head and make funny of we, but Chinese Citizenism will crush bignose Westerners in soon time!

Mon, 04/30/2012 - 12:47 | 2385330 Likstane
Likstane's picture

Shut your rice-spewing, fish crunching, slant-eyed face. It's obvious he was mocking Japs.

Mon, 04/30/2012 - 13:09 | 2385388 AnAnomalous
AnAnomalous's picture

Ha!

Another loud in the mouth, bignose arrogant USA citizen I am guess, always the thinking with big swinging dick and not with brains, such as Chinese citizens are good endowed.

And for information of you, we Chinese citizens are not the fish crunching oftenly, but better much liking the puppy crunching.  Roasted puppy with garlic and ginger, Oh! that is the goodness!

Mon, 04/30/2012 - 14:27 | 2385818 _underscore
_underscore's picture

Wherever you come from AA, I don't think it's from the far east - your english is just a bit too 'perfectly' imperfect - I wonder who is taking the what from whom here?

 

Mon, 04/30/2012 - 18:55 | 2386781 prole
prole's picture

Who are you to question Chinese Citizenism? It is eternal!! Like General Chao's Chicken! Always on menu!!

Mon, 04/30/2012 - 10:15 | 2384925 lunaticfringe
lunaticfringe's picture

Shit. And I just put the finishing touches on my one year silver anniversary piece. Maybe I should just sell all my shit and go long apple. http://thecivillibertarian.blogspot.com/#!/2012/04/one-year-anniversary-of-great-silver.html

Mon, 04/30/2012 - 10:53 | 2385042 Bindar Dundat
Bindar Dundat's picture

They are simply dropping their paper gold and silver.  They get that the EFT's are the same as fiat and are dropping their exposure to the ponzi.

Mon, 04/30/2012 - 11:28 | 2385131 trembo slice
trembo slice's picture

This sounds bullish on stupid.

Mon, 04/30/2012 - 12:36 | 2385304 Kelley
Kelley's picture

Well, that may be, but have you ever been able to sell your PM's to a dealer for a price higher than what the CRIMEX says the paper price is?

 

I'd like to know how it works that we little people get the true value for our stuff?

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