By SD Contributor Marshall Swing:
Gold & Silver COT Report 3/29/13
Commercial longs added 550 long contracts to their total and covered a 1,848 shorts to end the week with 44.59% of all open interest, a decrease of 0.44% in their share since last week, and now stand as a group at 120,205,000 ounces net short, which is a decrease of almost 12 million net short ounces from the previous week.
Large speculators sold off 1,159 longs and added a significant 2,488 more short contracts decreasing their net long position to 57,020,000 ounces, a decrease in their net long position of over 18 million ounces from the prior week.
Small speculators increased their long total by 1,248 contracts and covered a total one single short contract total for a net long position of 63,185,000 ounces an increase of 6.245 million ounces net long from the prior week.
Another somewhat quiet COT week, from a price perspective, as silver drifted slightly downward from $28.88 to $28.72 and continued downward after Tuesday’s close through the end of the week.
Very little has changed from a directions point of view as the large speculators continued to add significant short positions but the small speculators would have none of that strategy.
What is very interesting now is that of the new short positions taken by the large speculators, it is the small speculators and the swap dealers who took most of the long side of those bets!
We continue to see no attempt to dislodge speculator short positions by the commercials and the producer merchant chose to reduce both their long and short totals.
In gold, total open interest dropped by almost 21,000 contracts as it was only the commercials, in particular the producer merchant who added huge numbers of long contract bets and very few to the short side.
Gold commercial total open interest was back up to 52.13% from its low last week of 49.43% and still way off its high of 58.66% last April.