COMEX Commercials Least Net Short Gold In Years

November 13th, 2008

But is gold a four letter word yet?

Oh.

Via: Resource Investor:

Regardless of whether or not the world is near the end of the giant financial “Charlie Foxtrot” we have all endured up to now, the largest of the largest traders of gold futures now have the fewest bets that the U.S. dollar price of gold will fall further than they have had in years.

As of Tuesday, November 4, traders classed by the Commodities Futures Trading Commission (CFTC) as commercial held a collective net short position (LCNS) of just 76,406 out of a total 303,908 contracts on the COMEX, division of NYMEX in New York. A net short position means that the trader profits if the commodity goes lower in price.

Yes, the current COMEX commercial gold net short positioning is the lowest in years. Indeed, we have to go all the way back to June 7, 2005 to find a reporting week which shows a lower LCNS (67,052 then), back when gold closed at $424.87.

That doesn’t mean that gold can’t go lower still, it can. It just means that the big dogs in the futures trading arena are not positioning like they think it will. To the contrary.

Research Credit: Lagavulin

Posted in Economy | Top Of Page

2 Responses to “COMEX Commercials Least Net Short Gold In Years”

  1. pdugan says:
    November 13, 2008 at 3:59 pm

    Yup: http://www.itulip.com/forums/showthread.php?p=60311#post60311

  2. anothernut says:
    November 13, 2008 at 5:30 pm

    The gold market won’t turn seriously bullish until all the margin calls have been paid for all the losses that have yet to occur. IMO.

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