Gold’s sharp rally late looks like short-covering
(USAGOLD – August 17, 2018) – As you can see in the accompanying chart, most of gold’s $11 move to the upside this afternoon occurred late in COMEX trading. The sharp rally has the classic look of short-covering though we won’t have any data to back that hunch until the Commitment of Traders report is released next week. Many analysts over the past few weeks have pointed to the record short position in gold as cause to be optimistic. At some point, shorts need to cover their positions in order to lock-in their profits. Simultaneous to gold’s reversal, the dollar took an equally sharp tumble. Both moved in the absence of any notable or publicly disclosed political or economic news.