Gold Surges Over $40 As COMEX Shorts Collapse To 7-Month Low

Spot gold prices have surged over $40 from Sunday's knee-jerk lows as once again lower prices have encouraged demand. Gold had shfted back to unchanged from Friday's close before Boehner spoke but since then has accelerated over $20 higher.

 

Gold shorts in the futures and options markets have dropped for 6 of the last 7 weeks. The 60% drop in the non-commercial short position represents a massive 81,700 contracts (8,170,000 ounces or ~$10.6 billion worth of notional 'paper' gold).

 

Gold's 21% rise from the lows in the last 2 months is among the fastest rises since 1999; and GLD holdings have risen for the last 6 days in a row.

 

Charts: Bloomberg

 

Bonus... Spot the difference...