"No warning can save people determined to grow suddently rich" - Lord Overstone

  • 10 hours The Secretive Wall Street Firm Betting On Bitcoin
  • 11 hours ‘Data Is King’: The Oil Industry’s Next Most Valuable Resource
  • 12 hours Google Invests $300 Million To Combat Fake News
  • 13 hours Zuckerberg Dodges A Bullet As Facebook Loses Billions
  • 14 hours Tesla Tumbles As Investors Lose Patience
  • 16 hours Are Alt-Coins On The Verge Of A Break Out?
  • 17 hours What Should Gold Investors Expect From The New Fed Chair?
  • 19 hours Who Will Pay For Trump's $60 Billion China Tariffs?
  • 1 day Vladimir Putin’s Mysterious Fortune
  • 1 day Cryptos Resist Social Media Crackdown
  • 2 days The Death Of Dodd-Frank
  • 2 days Bitcoin Bounces Back Ahead Of G20 Meeting
  • 2 days Trump's Trade War Nears Boiling Point
  • 2 days Will April Be A Turning Point For Precious Metals?
  • 2 days Economic Pressures Weigh On Banks And Borrowers
  • 2 days U.S. Political Uncertainty Keeps Stock Markets On Edge
  • 2 days Gold: The Religion Of Currency
  • 4 days Economists Polarized On Trump’s Tariff Plan
  • 4 days Why Are Investors Overlooking Gold Stocks?
  • 4 days The App That Democratized Trading Is Now Worth $5B
The App That Democratized Trading Is Now Worth $5B

The App That Democratized Trading Is Now Worth $5B

Investors and customers have rallied…

Consumer Confidence Fails To Boost Retail Sales

Consumer Confidence Fails To Boost Retail Sales

Consumer confidence measured by market…

Economists Polarized On Trump’s Tariff Plan

Economists Polarized On Trump’s Tariff Plan

Economists are polarized on Trump’s…

Gold COT (CFTC - Commitment of Traders) for Period 4/18-4/24

Commercials bought 3,264 longs and covered a whopping -5,590 2,669 shorts to end the week with 58.83% of all open interest and now stand as a group at 16,723,700 ounces net short, a decrease of close to -1,000,000 net short from the previous week.

Large speculators were absolutely trounced and gave up -3,697 longs and picked up a whopping 3,314 shorts for a net long position of 13,499,400 ounces, a decrease of about 700,00 ounces from the prior week.

Small speculators faired better in the scourging and only lost -683 longs and 1,160 shorts for a net long position of 3,224,300 ounces a decrease of a less than 200,000 ounces from the prior week.

The beating the large speculators took on their longs was devastating.

I want to remind you they have been holding those longs for quite some time as they have not picked up longs in several weeks but at higher prices so these longs were bought some time ago. Fear crept into their sell stops, I am sure. The producer/merchant had already calculated the level those longs were at and knew EXACTLY how much to drop price to effect their desired results.

The small speculators picked up a bunch of shorts and they are going to lose some money since we now know the commercials added 3,264 longs. Price has risen about $20 since the pit close on Tuesday so this process of shaking out those shorts may already be over. But, the tremendous short position the large speculators added was far more devastating to them. If the commercials have in fact finished the destruction of the speculator shorts at this level, expect the price to fall this coming week. That is my bet that they accumulated shorts all the way up while the little guys divested their short positions and may have gone long only to be stopped out soon.

Tne only way to be successful in these markets is to either think like a producer merchant or buy long and stay long with liberal stops. If the speculators did that, they could win this battle as the producer merchant could get SHORT changed. See you next week!

COT Gold 4-24-2012


Back to homepage

Leave a comment

Leave a comment

Sign Up For The Safehaven Newsletter