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Here is what the acclaimed trader had to say about the gold market: “The record net short commercial position in gold, including options, has been 237,000 contracts. Currently the commercials are at 161,000 contracts net short. But the key here is that the hedge fund position is still relatively low by historic standards.
So there is still significant room for the hedge funds to push this gold market higher....
Continue reading the Dan Norcini interview below...
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“The gold market has a great deal of momentum behind it and the round number of $1,700 is important because those round numbers can sometimes slow an advance in a market like gold.
We’ll have to wait and see if gold can run right through $1,700 or if it needs to do some work here to get through that area. If you notice, today gold had cleared $1,700 comfortably, but it has now retreated right back down to that level.
If we look at the silver market, in the past, the commercials had a record 66,000 contract net short position in silver, but currently they are at 47,000 contracts net short, including options. It is also true that the hedge funds have room to add long positions in the silver market as well.
But this might shock some people, the swap dealers are still net long the silver market. The swap dealers have been reducing that long position by selling to the hedge fund buyers. So there is still the potential for the silver market to continue to experience some significant upside.”
Norcini concluded: “What you can bring away from this, Eric, is that hedge fund money has been largely absent from the gold and silver markets. So the driver to move these markets higher is coming back in with this hedge fund buying. There is a very healthy interest now in the hedge fund community to be in both the gold and silver markets, and this has the potential to continue to fuel this rally.
This is one of the reasons why, over the past 30 days, the price dips have been very shallow in both of these markets. The hedge funds are buying the dips and keeping retracements to a minimum. As long as they continue to buy the dips, I expect these metals to continue trending higher.”
KWN had an incorrect (old) link for the most recent Dr. Marc Faber interview. This was an incredibly powerful interview with one of the greats. Dr. Marc Faber discusses everything from gold and silver, to investment allocations, confiscation fears, dangerous trends, protecting oneself, central planners, inflation and much more. The KWN audio with Dr. Marc Faber is available now and you can listen to it by CLICKING HERE.
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
The interviews with James Dines, Marc Faber, James Turk, Egon von Greyerz, Art Cashin (UBS $612 billion), Agnico CEO Sean Boyd, John Hathaway and Eric Sprott are available now. Also, be sure to listen to last week’s line-up of other KWN interviews which included Jean-Marie Eveillard, and John Mauldin by CLICKING HERE.
Eric King
What Hedge Funds Are Now Doing In the Gold & Silver Markets
With gold breaking $1,700 and silver nearing the $33 level, today King World News spoke with acclaimed trader Dan Norcini to get his take on where we are in the gold and silver markets after this latest move. Norcini was quick to lay out the position of the hedge funds in both of these markets as they are seen as a key driver.
© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast,
rewritten, or redistributed. However, linking directly to the blog page is permitted and encouraged.
September 6, 2012
