Gold COT Report 8/17/12: Commercials Reduce Net Shorts by Another 250,000 Ounces

Submitted by SD Contributor Marshall Swing


Commercials sold off a huge -1,593 longs and covered a massive -4,071 shorts to end the week with 56.52% of all open interest, a significant decrease of about 0.72% from the previous week in total open interest, and now stand as a group at 14,394,000 ounces net short, a small decrease of  -247,800 ounces net short from the previous week


Large speculators sold off -1,647 longs while covering -451 shorts for a net long position of 11,430,400 ounces, a small decrease in their net long position of 119,600 ounces from the prior week.


The small speculators sold -1,115 longs while adding 167 shorts for a net long position of 2,963,600 ounces a decrease of -128,200 ounces in their net long position from the prior week.


Overall, all players moved in the same direction this week and the only interesting spot is the swap dealers captured 891 longs and picked up 878 shorts.


Predictions in gold are a wash, however, a further attack on speculator long positions occurred on Wednesday.  What is not seen in the price chart is consistent long buying.  We see big leaps up in price on Wednesday and Thursday.  My theory is this represents commercials trying to establish higher prices and excitement to entice speculators into the game to purchase longs and that is not happening.  Another day or two of the doldrums and we can expect to see price raided significantly.


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: and email addresses as well:


[email protected]  Chairman Gensler


[email protected]  Commissioner Chilton


[email protected]  Commissioner Sommers


[email protected]  Commissioner O’Malia


[email protected]  Commissioner Wetjen


[email protected]  Director Meister


See you next week!