RSSCategory: Category: Trading

Gold-Futures Buying Returns

| November 8, 2013 | Category: Trading
Gold-Futures Buying Returns

Today per the latest CoT this 2013 deviation is back down to 116.3k contracts. Futures speculators still have to buy back the equivalent of 11.6m ozs of gold merely to mean revert to their 2009-to-2012 average levels of total longs and shorts with no overshooting. This remainder is 1.7x larger than the big chunk of shorts the traders initially covered in July and August which catapulted gold sharply higher! It is very bullish.

Continue Reading

CFTC Believes That Silver Is A Free Market After 5 Year Investigation

| September 26, 2013 | Category: Trading
CFTC Believes That Silver Is A Free Market After 5 Year Investigation

The CFTC announced earlier today that they will close the five-year investigation about silver market manipulation. According to their press release, the organisation has spent 7,000 staff hours of investigation which as produced no evidence of wrongdoing. Ted Butler explains that the CFTC did not touch the key issue: the degree of concentration on the short side of COMEX silver (and gold) held by one or two US banks in the August 2008 Bank Participation Report.

Continue Reading

Ted Butler: JP Morgan Holds 2 Corners In The Gold And Silver Market

| September 20, 2013 | Category: Trading
Ted Butler: JP Morgan Holds 2 Corners In The Gold And Silver Market

The only reason we ever go down in price in gold and silver is that the commercials, but mainly JP Morgan, can buy contracts. And the only reason they buy them is to make money; the way they make money is they eventually sell it. So they’re going to move this position eventually.

Continue Reading

JP Morgan, Goldman, Bank of America Turn Bullish On Precious Metals

| September 19, 2013 | Category: Trading
JP Morgan, Goldman, Bank of America Turn Bullish On Precious Metals

What a difference one day and one person makes. Now that Mr. Bernanke announced not to slow down his asset purchases (which run at the rhythm of roughly 1 trillion US dollar per year) the bearish outlook of several major banks has turned bullish, at least in the short and mid-term.

Continue Reading

Gold & Silver Needs A Breakout On The Technical Price Charts

| September 10, 2013 | Category: Trading

Gold, after looking like it was going to try to push through $1400, swiftly succumbed to selling pressure in spite of the strength in the Euro. It sure does seem as if that “14” handle is proving to be difficult for the metal to hold right now. Same goes for silver in the sense that maintaining itself above the $24 level for any length of time is also elusive.

Continue Reading

It’s Official – Goldman Sachs Was Buying GLD While Advicing To Sell

It’s Official – Goldman Sachs Was Buying GLD While Advicing To Sell

In Q2, Goldman Sachs added a stunning (and record) 3.7 million ‘shares’ of GLD. As Paulson dumped his GLD, Goldman lapped it up to become the ETF’s 7th largest holder.

Continue Reading

Hedge Funds Could Cause A Potential Disaster In The Gold Industry

Hedge Funds Could Cause A Potential Disaster In The Gold Industry

Mr. Hambro is a leading figures in the gold mining sector in Britain. He is in the gold and mining sector for several decades. He was quite vocal recently in criticising the hedge fund community for distorting the gold market. One of the comments was a warning that hedge funds could account for a potential “disaster” in the industry.

Continue Reading

Gold Futures’ Spread Continue to Tighten

| August 12, 2013 | Category: Trading
Gold Futures’ Spread Continue to Tighten

I wanted to provide a quick update for those who are following the “backwardation” talk out there. The futures market has still not entered a backwardation state but it is just about there. Also, thus far I have not seen anything that would signal any problems with the delivery process for the August gold contract but one thing that does stand out is that J P Morgan continues to be the consistent, large stopper of gold for their “House” account. Morgan is acquiring a lot of gold.

Continue Reading

Silver Short Squeeze

| August 10, 2013 | Category: Trading
Silver Short Squeeze

The only way for speculators to unwind futures short positions is by buying other contracts to offset their earlier sales. To go short they sell futures contracts, then to close these trades they buy them back. And this buying drives up silver’s futures price exactly like new long-side buying. So the massive shorts in silver futures guarantee proportional massive buying in the coming months to cover and close these bets.

Continue Reading

Watch Copper Prices For Silver’s Short Term Outlook

| August 4, 2013 | Category: Trading
Watch Copper Prices For Silver’s Short Term Outlook

The market is in a trendless phase – the downtrend has been interrupted but rather than an uptrend starting, the market is consolidating (moving sideways) with a negative or bearish bias. Without a rising copper, palladium, aluminum, tin, zinc, price it will be up to gold to bring buying into silver with those who do so focusing more on its role as a monetary metal. While talk that inflation pressures remains subdued dominates current thinking, the grey metal will underperform gold. I still like to watch copper prices to get a better sense of what silver might do.

Continue Reading

Gold Short Squeeze

| July 20, 2013 | Category: Trading
Gold Short Squeeze

The CFTC releases its CoT late every Friday afternoon, current to the preceding Tuesday. So the latest available data when this essay was published was Tuesday July 9th’s. And it is truly stunning. Gold-futures speculators held the short side of an astounding 178.9k contracts that day! This was at least a 12.3-year high, the most-extreme gold-futures spec short position by far in gold’s entire secular bull.

Continue Reading

Gold – Some Chart Analysis

| July 14, 2013 | Category: Trading
Gold – Some Chart Analysis

In light of the recent apparent reversal by Fed Chairman Ben Bernanke when it comes to the timeline for any TAPERING of the Fed’s Bond Buying program, I felt it might be a good idea to take a look at where gold stands on the technical price charts. From a pure chart perspective, the current move higher in gold is nothing more than a rally in an ongoing bear market. Remember, a market can end a trend without necessarily beginning a new trend in the opposite direction right away.

Continue Reading