Gold Shorts Plunge To 5-Year Lows

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...


c2nnib2l Mon, 12/04/2017 - 08:56 Permalink

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

chubbar Bill of Rights Mon, 12/04/2017 - 09:28 Permalink

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.

In reply to by Bill of Rights

SRV lester1 Mon, 12/04/2017 - 11:58 Permalink

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). 

In reply to by lester1

jmack Mon, 12/04/2017 - 09:05 Permalink

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 Mon, 12/04/2017 - 09:08 Permalink

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 FreeShitter Mon, 12/04/2017 - 09:22 Permalink


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

My advice to you given the current landscape (…) (…) 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"?!!!

In reply to by FreeShitter

wonger Mon, 12/04/2017 - 09:28 Permalink

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 Mon, 12/04/2017 - 09:34 Permalink

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.

everything1 Mon, 12/04/2017 - 09:45 Permalink

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. 

Dragon HAwk Mon, 12/04/2017 - 09:46 Permalink

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 Mon, 12/04/2017 - 09:50 Permalink

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.

FreeNewEnergy Mon, 12/04/2017 - 10:19 Permalink

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.

MrBoompi Mon, 12/04/2017 - 10:54 Permalink

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 Mon, 12/04/2017 - 12:27 Permalink

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 Mon, 12/04/2017 - 12:34 Permalink

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?