Gold COT Report 9/28/12: Commercials Increase Net Shorts Another 1.3 Million Ounces

Submitted by SD Contributor Marshall Swing:
Gold COT Report 9/28/12


Commercials sold off -4,296 longs and added 8,426 shorts to end the week with 56.32% of all open interest, a decrease of about +0.85% from the previous week in total open interest, and now stand as a group at 26,235,500 ounces net short, a significant increase of 1,272,200 ounces net short from the previous week. 

Large speculators continued their long buying pace just under last week’s net gains by picking up 9,006 longs while also covering -3,775 shorts for a net long position of 20,389,600 ounces, an increase in their net long position of 1,278,100 ounces from the prior week.


The small speculators added 1,487 longs while covering -1,546 shorts for a net long position of 5,845,900 ounces an insignificant decrease of -5,900 ounces in their net long position from the prior week.


The most significant numbers in this COT are the 20,356 short contract positions added by the producer merchant of the commercial traders.  It would appear they have no interest in seeing gold prices rise further.  The tag team between the producer merchant and the swap dealers in short accumulation and short covering raids continues!


During the COT period, from Tuesday afternoon to the following Tuesday afternoon, we did not see a massive short covering but it appears that may have happened this last Wednesday morning.  Following that raid, price has rebounded nicely but seems to be locked in at about the $1770 range which is about the mean average price for 6 trading days now.


Taking all the numbers into account, I did not think we have seen the last of near term short covering raids to the downside as the numbers accumulated by both commercials at these levels would not have been used up in Wednesday’s raid.


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!