Gold COT Report 7/13/12: Commercials Reduce Net Shorts 1.4 M Ounces

Submitted by SD Contributor Marshall Swing:

Gold COT Report 7/13/12

Commercials amassed 8,473 longs and covered -5,398 shorts to end the week with 55.78% of all open interest, a small decrease of about .25% from the previous week, and now stand as a group at -15,276,200 ounces net short, a  decrease of almost 1,400,000 ounces net short from the previous week. 

Notice, at the bottom of the COT table, the swap dealers are now net long 79,900 ounces.  The last time they were net long was on May 22 but then a paltry 8,200 ounces.  Will they continue to strive  for a dominant long position just like their brethren in the silver sector?

Large speculators sold off -5,107 longs while adding 5,873 shorts for a net long position of 12,623,500 ounces, a decrease in their net long position of almost 700,000 ounces from the prior week.

The small speculators only gave up -95 longs while adding 2,796 shorts for a net long position of 2,653,100 ounces an decrease of almost 300,000 ounces in their net long positions from the prior week.

The really interesting point here is the small speculators completely distanced themselves from the tactics of the large speculators.  Spot price went from a high of $1,624 to a low of $1571 and those small speculators held onto their long positions.  They probably are still holding onto those longs as price dropped down to $1555 on Thursday of this week but has since returned to $1588.  Could it be they bought those longs on the rise to $1625 and are determined not to lose them to the stop tripping antics of the commercials in their never ending raids on newly bought speculator longs?  Or did they merely go on summer vacation with no stops set?

Perhaps they are changing their philosophy from short term players trying to make a quick buck because they know it is the long term holders who will absolutely clean up in this game?

You decide!

Always for your convenience, if you would like to contact the CFTC and express your views to them, I have provided you their phone numbers and I hope earnestly that you fill up their phone lines: http://www.cftc.gov/Contact/index.htm and email addresses as well:

ggensler@cftc.gov  Chairman Gensler

bchilton@cftc.gov  Commissioner Chilton

jsommers@cftc.gov  Commissioner Sommers

Somalia@cftc.gov  Commissioner O’Malia

mwetjen@cftc.gov  Commissioner Wetjen

dmeister@cftc.gov  Director Meister

See you next week!

Marshall