For those wondering who the sellers were that leaned on POG this past week, this week's COT verdict is in. Drum roll, please! :
The specs (usually dumb money: often hedge funds) leaned on the market to the tune of new 6,266 contracts short. They are now short 58,972 contracts or 41.03% of open interest (143,725). I think that's a record spec/open interest number, virtually a short corner on gold. There must be a rogue trader or two out there? This doesn't smell right.
And taking the other side in this game of chicken were the commercials (the smart money), who not only accommodated the spec shorts, but added a few extra longs to boot. They are now long 62,175 contracts, up 7,872 from last week. Virtually a long corner at 43.26% of OI.
There is also a nice commercial long position building in copper as well. The commercials are huge shorts in the SPoos and interest rate futures as well.
I don't know about you all, but I'm sleeping well at night on my gold investments off of this news. Somebody's going to win this corner game, and I like my odds being on the commercials side. What they heck specs, why not do it next week too, if you dare. |
