Last week was just a taste of the coming gold short squeeze
“These are historically huge imbalances that – if the action in the paper markets still has predictive value – point to a gold short squeeze in which the speculators who are now betting that precious metals will fall are forced to cover those positions by buying, in the process sending the price up dramatically. On Thursday we got a sense of what that might look like. Stock markets around the world sold off, which sent capital scurrying for cover. Some of that capital flowed into gold, which chased futures speculators out of some of their shorts. The result was a nice pop in gold. . .”
USAGOLD note: The link above offers some details from John Rubino on the possibility of a short squeeze in the COMEX gold market. It includes a review of Friday’s Commitment of Traders numbers.