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August 24, 2018 | Gold COT Update: Big Specs Increase Shorts

Mike 'Mish' Shedlock

Mike Shedlock / Mish is a registered investment advisor representative for SitkaPacific Capital Management. Sitka Pacific is an asset management firm whose goal is strong performance and low volatility, regardless of market direction.
Commercial gold traders are still short, but barely.

I like the format of CotPriceCharts but there is a delay in updating the charts for some reason.

I highlighted the changes as noted by the current US Commodity Commitment of Traders Report. Not all of the reports are in a single link.

Delta Adjusted With Options Plus Futures

There is also an COT Report that takes into consideration Options Plus Futures

By this measure, big specs are net short 23,964 contracts while small specs are net long 2,494 contracts making the commercials net long 12,709 contracts.

Commercial Trader Explanation

Commercial traders consist of miners forward selling gold plus the market makers. The miners selling gold are always net short.

On a futures-only basis, the big specs are net short for the second week.

Prior, the last time big spes were net short was December of 2001.

My comment then was “This is an exceptionally good gold setup.”

Gold Weekly Rally

Gold rallied $29.10 this week, but that is not an accurate way of looking at things from a COT point of view.

The COT reports came out today but are as of Tuesday, August 21.

We do not know if shorts added to or reduced positions today, on Fed Chair Jerome Powell’s speech.

If shorts increased their bearish bets they added more to the short-covering fuel.

Mike “Mish” Shedlock

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August 24th, 2018

Posted In: Mish Talk

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