Bullion banks and hedge funds making moves in the gold and silver markets
“Tonight’s Commitment of Traders report for last Thursday is a surprise. First, we see that the Swaps (bullion banks) are beginning to lose the battle to close their short positions, and the Producers/Merchants have reduced their net shorts. But the big surprise is the Managed Money category (hedge funds) which has gone net long 11,691 contracts.”
USAGOLD note: Trend reversals in the paper gold market may be green flagging higher gold prices, according to this timely analysis from Alasdair Macleod. We remind that hedge fund selling in the paper markets and gold ETFs were tagged not that long ago as one of the prime reasons for gold’s decline over the past several months. As such, the turning tide Macleod identifies might turn out to be significant.