COT June 2014 – New Longs And Lots Of Short Covering

This is an excerpt from a post at ShortSideOfLong.com, an excellent investment analysis blog which also covers precious metals.

This month’s commitment of traders reports have shown substantial increase in Precious Metals net long positioning. Gold’s commitment of traders report stands 131,607 net long contracts (33.5% of open interest) in the month of June, compared to last months level of 78,638 (19.8% of open interest). In the Silver market, the commitment of traders report stands 42,897 net long contracts (27.1% of open interest), compared to last months level of 14,230 (9.1% of open interest).

The two charts show cumulative gross longs and shorts in Gold and Silver market. We should be able to observe that while majority of the recent changes in the commitment of traders report have come from short covering, especially in Silver, there has also been some buying interest as well. Technically speaking, the precious metals sector still remains in a downtrend and has to overcome quite a few resistance levels before a bull market is to return.

 

Precious-Metals-Long-COT-June-2014

Precious-Metals-Short-COT-June-2014

 

 

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