The above chart is from 321Gold. It matches the CTFC Report.

Jump in Shorts

Last Week = (101,695 + 41,554) minus the jump (13,396 + 11,449) = 118,404

Increase in shorts = (13,396 + 11,449) = 24,845

Percentage Increase = 24,645 / 118,404 = 20.98%

Long Liquidation

Image placeholder title

Frequently one hears comments like "commercial reduced their short positions".

While arguably accurate, it conveys the wrong idea.

Commercial traders, except for producers who do sell short, simply take the opposite side of the trade. The commercial traders are not net short, they hedge.

Thus it is a more accurate summation to call this for what it is: Long liquidation. Gold longs are increasingly unconvinced and are throwing in the towel.

Like Hickey, I believe speculators throwing in the towel and betting against gold is ultimately bullish.

Hickey notes "The shorts have to cover." It's important to note that applies to speculators, not producers or hedgers.

Mike "Mish" Shedlock

Investigating the Claim "Speculative Shorts Driving Gold Lower"

Are speculative shorts "driving or contributing" to the move lower in gold? Let's investigate.

Gold Bell Rings: Vanguard Throws in the Towel on Precious Metals and Mining Fund

Vanguard just threw in the towel on a Metals and Mining Fund. It morphs into a Global Capital Cycles Fund.

Buy and HODL Forever, Legendary Short Seller Throws in the Towel

Buy and HODL Forever, Legendary Short Seller Throws in the Towel

Large Specs Net Short Gold First Time Since 2001: Buckle Up!

Large specs are net short gold but commercials are still slightly short because small specs are long enough.

Record Bearishness on Gold as Commercials Go Net Long Fifth Week

Commercial traders are net long gold by the most in 17 years as hedge funds go increasingly short.

Gold Shorts About to Get Burned

The Gold COT report shows gold shorts piling on in addition to long liquidation. Meanwhile, the price of gold is rising.

Gold COT Update: Big Specs Increase Shorts

Commercial gold traders are still short, but barely.

First Major Company to Support Bitcoin Payments Throws in the Towel

Bitcoin is too slow and costs too much to use in transactions. Why bother?

Gold Bears Press Bets in Record Numbers

Gold shorts are near a record high as saturating bearishness sets in.