Buy Gold, Silver Time After Speculators Reduce Longs and Banks Reduce Shorts
By: GoldCore
GoldSeek.com
Tuesday, 12 December 2017
– Gold and silver COT suggests bottoming and price rally coming
– Speculators cut way back on long positions and added to short bets
– Commercials/banks significantly reduced short positions
– Commercial net short position saw biggest one-week decline in COMEX history
– ‘Big 4’ commercial traders decreased their short positions by 28,800 contracts
– Seasonally, January is generally a good month to own gold (see table)
– “If history is still reliable, January will be a great month to own precious metals”
Have you found the gold price in the last few months to be particularly boring? Well, fear not as it looks like it might all be about to take a turn upwards. Last Friday’s Commitment of Traders (COT) report signaled we are close to bottoming and suggest that both gold and silver should have a positive January and Q1, 2018.
As John Rubino wrote in his latest note, ‘gold futures traders have finally started behaving “normally.”’ This simply means that speculators are finally beginning to cut back on long bets whilst commercials and large bullion, the “smart money” and the “inside money” have reduced their shorts dramatically.
This was seen in gold and also in silver, the industrial, technological precious metal. Historically when commercial and speculator positions are brought into balance then this has proven to be bullish for the precious metals.
Previously peaks in net commercial short interest have often happened alongside sell-offs, subsequently valleys in commercial short interest have almost always coincided with nearby rises in price. This could be a positive indicator for the next few months in both gold and silver prices.
The Rest…HERE
