Ballanger on last week’s gold COT report
“Once again, and in honour of an ancient financial tradition, gold and silver fulfilled their respective roles as ‘precious’ metals, accordingly defined as ‘objects of great value; not to be wasted or treated carelessly.’ As we head into the final eight weeks of 2018, there are a great many managers of other people’s money who are paying attention—and it couldn’t happen at a more opportune time. Tonight’s COT report shows that the Commercials were covering shorts into weakness while the Large Spec algobots continued to pile and add shorts/dump longs also into weakness. As long as the Large Speculators continue to carry such a paltry number of longs (13,194 futures only; 5,976 futures and options), the gold price should continue to trend higher through year-end. It is imperative to remember that major declines in gold have occurred when the aggregate long positions held by Large Speculators exceed 300,000; we are nowhere near that figure today and won’t until $1,400 is tested by year-end.”
USAGOLD note: Ballanger also offers his take on the stock market at the link above. . . . .