Gold COT Report 8/31/12: Commercials Increase Net Shorts a MASSIVE 3.24 Million Ounces!

Submitted by SD Contributor Marshall Swing:


Commercials sold off a measly -1,147 longs while breaking the bank picking up -33,549 shorts to end the week with 56.47% of all open interest, an increase of about 0.41% from the previous week in total open interest, and now stand as a group at 20,362,400 ounces net short, a huge increase of  3,240,200 ounces net short from the previous week


Large speculators also busted the budget buying up 23,900 longs while covering -3,907 shorts for a net long position of 15,849,100 ounces, a big increase in their net long position of over 2,700,000 ounces from the prior week.


The small speculators sold off 4,501 longs while covering -94 shorts for a net long position of 4,513,300 ounces an increase of just less than 500,000 ounces in their net long position from the prior week.


What we see here is unlike their silver commercial counterparts the gold commercials made a huge play for short positions and may have used those positions to sack the speculators Wednesday, Thursday, and more particularly on Friday.


In the gold chart, we also see strong attempts to dislodge those speculative longs, after the reporting period ended on Tuesday.  If you closely examine the move today, gold was taken down to a level of $1648 before the price rise.  That level corresponded to a price point the prior Wednesday which I believe signaled the point at which speculators began adding most of their longs.  This may have opened the way for massive long buying on the part of the commercials Friday.


Almost 31,000 contracts were traded in just one half hour Friday morning kicking off the price rise.  That single half hour covered over $25 in gold price from $1648 to $1674.


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!