Bullion banks and hedge funds are making moves in the gold and silver markets.
March 19 (King World News) – Alasdair Macleod out of London: 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. Other Reporteds and Non Reporteds have cut their net longs, in effect supplying the hedge funds.
One would have thought that the Managed Money category would not be buying gold contracts at a time when bond yields along the curve are rising, because this category normally sells gold futures for dollars in these conditions…
To find out which silver company just made a major acquisition that will
quadruple their production click here or on the image below
But the next chart shows that they have a long way to go if they continue buying before they are in overbought territory (ie above the dotted line).
Open interest is bottoming out, which with a steadier gold price indicates a base for a bullish move is forming. Open Interest is our next chart.
At 475,979 contracts, Open Interest is showing signs of falling no further. That being the case, the bullion banks face renewed difficulties. Our next chart is of their money position.
The gross short position is $34bn, net $23bn. This is still painful but will be nothing compared with the pain to come if the hedge funds continue to buy, despite the rise in bond yields. That is our last chart.
This is a significant and rapid rise for the 10-year US Treasury bond yield. It indicates growing fears of price inflation, which all the big banks are now talking about. That must be why the hedge funds are buying gold contracts.
Within hours KWN will be releasing 2 audio interviews!
© 2021 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the articles is permitted and encouraged.
This content was originally published here.
In the wonderful world of numismatics, you will hear many terms for the gold and silver that you purchase, and some of…
Product Add-ons/Gift Wrapping Any gift box is supplied with a capsule. Please note not every product is eligible for…
Share Great Content for Our Resource Section
MoneyForGold.com is a resource site created for those looking to sell their personal collection of gold - whether it’s jewelry, coins, bars, antiques, etc., anything made from gold can be sold for quick cash. We encourage visitors to signup and share quality “Money For Gold” resources.
Have a question or comment? Email us at: firstname.lastname@example.org