Another big week for massive open interest changes almost like two weeks ago except this week gold open interest was downsized big-time.
In silver, price started at 18.85 and ended about 19.55 Commercials added almost as many longs as they sold shorts so they remain net short 105 million oz in silver!
By SD Contributor Marshall Swing:
The large specs went massively short following last week’s small speculators going short and to date they have been rewarded for their effort and more so the small specs, if they sell. The COT shows the small specs, as of close on Tuesday added massive contracts long but had not yet cashed in on their shorts. But we see most of the action long in the commercials was with the swap dealers while they both bought short. They might have cashed in on Thursday, if you notice a temporary bottom seems to be in but not likely the bottom they are after.
God was far more dramatic with price starting around 1240 and ending about 1252 but with a high of 1279.80 in between. Those gold speculators took gold from a low of 1230 to that high in just 48 hours and unloaded almost 24,000 long contracts by early Friday morning. During this same timeframe it appears large speculators were bounced out of almost 16,000 short contracts. The small spec were busy selling large volumes of both longs and shorts! We see most of this action was foisted upon the speculators by the producer merchant unloading almost 22,000 longs while the swap dealer were fairly silent. It is the same producer merchants that made the majority of the big moves two weeks ago. But, remember two weeks ago they were on the long and short side of over 20,000 contracts so they are still holding, at least as ofTuesday close, a huge number of fresh shorts. They moved back to over 1.25 million ounces long as the swap dealers moved slightly more net short at 5.257 million ounces short but were relatively inactive.
Maybe the PM got rid of some of those gold shorts with the crash on Thursday? I bet so!