Below is a critical update on the war that is raging in the gold and silver markets.
The following charts are from Jason Goepfert at SentimenTrader.
King World News note: Last week KWN warned “it is important to be aware that the commercial shorts may already be at a level (real-time) that raises some concern.” That turned out to be accurate. Below you can see the commercial hedgers position in the silver market market. Note that commercial hedgers have been adding aggressively to their short positions on the recent surge in the price of silver (see multi-year chart below).
We won’t be able to see how many additional short positions have been added by the commercials in the silver market until next Friday, but it is important to be aware that the commercial shorts are already at a level (real-time) that raises some concern. For the record once again, that does not mean that the price of silver cannot head significantly higher in the short-term.
The next chart takes a look at gold…
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King World News note: Below you can see the commercial hedgers position in the gold market market. Note that commercial hedgers have been adding a bit to their short positions on the recent surge in the price of gold (see multi-year chart below).
King World News note: Again, sometimes it’s important to take a step back and look at the big picture in the gold market (see fascinating 23-year chart below).
Although commercial are adding a bit to their short positions in gold, they are nowhere near the levels that have marked previous peaks in recent years. This means there is most likely quite a lot of room to the upside in the gold market on this current leg of the advance.
Also Of Importance…
The following commentary is from Jason Goepfert at SentimenTrader: Optimism on gold has spiked lately, especially in the miners. The 20-day average of the Optimism Index of the Junior Gold Miners fund has risen to a new record high for that fund. That might indicate a change in market environment but it needs to prove this isn’t a failed attempt like every other time in recent years (see multi-year chart below).
We highlighted a plethora of bullish signs for gold and the miners in November, so it’s quite possible the fund is embarking on a new, extended bull market but in the medium-term this jump in optimism has not been a good sign for those looking to add exposure. It would be best to see this dampen in the coming weeks.
Optimism on the GLD fund is near a record high as well (see multi-year chart below).
The bottom line is it will be very interesting to see how both gold and silver trade in the coming weeks and KWN will keep our global readers updated as the situation changes.
This commentary was just a portion of one of the latest fantastic reports. To try a free 14-day trial of the internationally acclaimed work that Jason Goepfert produces at SentimenTrader simply CLICK HERE.
***KWN has now released the extraordinary audio interview with Dr. Marc Faber, where he discusses the greatest threat to the world, his stunning predictions for the rest of 2016, gold, and what investors can do with their money right now, and you can access it by CLICKING HERE OR ON THE IMAGE BELOW.
Also, the long awaited audio interview with London metals trader Andrew Maguire has now been released and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO RELEASED: Marc Faber Just Accused Central Banks Of Halting The Decline In Global Stock Markets CLICK HERE.
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