Below is an update on the war that is raging in the gold and silver markets.
The following charts are from Jason Goepfert at SentimenTrader.
There were very little changes in the COT reports this week. What they showed was a bit of short covering on the part of the commercial hedgers (see gold and silver COT charts below).
10-Year Gold COT Positions
23-Year Silver COT Positions
What Does It All Mean?
What this means is that gold and silver may still head significantly higher, but they remain vulnerable to the possibility of a pullback in the near-term. It is very difficult to predict how the metals will react to such historic commercial short positions in a secular bull market. So far it has just meant higher prices for gold and silver followed by consolidation. We will see what the next few weeks holds as we get ready to enter the seasonally strong period for precious metals in the fall.
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