Gold COT Report 9/14/12: Commercials Added 1.8 Million Ounces of Gold Shorts Prior to FOMC

Submitted by SD Contributor Marshall Swing:

Gold COT Report 9/14/12


Commercials bought a respectable 3,402 longs while breaking the bank picking up a huge -21,107 shorts to end the week with 56.82% of all open interest, an increase of about +0.71% from the previous week in total open interest, and now stand as a group at 23,709,100 ounces net short, a significant increase of  1,770,500 ounces net short from the previous week


Large speculators continued at about the same pace of long buying collecting a sizeable 9,458 longs while also covering -2,094 shorts for a net long position of 18,201,600 ounces, an increase in their net long position of over 1,155,200 ounces from the prior week.


The small speculators snapped up 3,328 longs while covering -2,825 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.


Long and short open interest positions for our three major traders continued in exactly the same direction for the third week in a row in each category.  Commercials have added to their long and short positions three weeks in a row while speculators have added longs and covered shorts exactly three weeks in a row.  Going back to the fourth week, the only difference was a big sell off of longs by the commercials.  So this is a 4 week trend now.  Interestingly, we do not see the same trends on the silver side of the house.  I just note these facts as I see them and try “to reason why…”


The commercials have added 88,881 short contracts in the last 4 reporting periods.  That almost 9,000,000 ounces in short contracts they have purposefully signed for in just four weeks!


What do these two factors mean?  Every investor has to look at a trend and determine individual validity.


To me, it looks like a big fish has been hooked and line is being let way out so it will run only to eventually be reeled into the boat.


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!