On the heels of another wild trading week, we have seen aggressive commercial short covering in the gold market and silver markets.
Aggressive Short Covering In Gold!
May 5 (King World News) – As we close out trading for the week, there has been short covering in the gold market.
We are seeing now seeing more aggressive commercial short covering in the gold market (see chart below).
Aggressive Commercial Short Covering In Gold!
Long-Term Look At Gold
Here is a longer-term look at the commercial positions in the gold market, where they have already covered a large number of their short positions and where we may see additional short covering in next week’s report (see chart below).
24-Year Chart Of Commercial Gold Positions
After the recent action in gold, it will be very interesting to see the next COT report…
Aggressive Short Covering In Silver!
You can see that commercials covered more of their short positions in the silver market as the bullion banks once again approach all-time bullish positioning (see chart below).
Commercials Cover Silver Shorts
Long-Term Look At Silver
You can take a look at long-term commercial short positions in the silver market (see 10-year chart below)…
10-Year Chart Of Commercial Silver Short Positions
The sentiment in the mining shares is also extremely negative right now and that is very bullish from a contrarian perspective. If you are accumulating physical gold and silver, just continue to purchase at the normal times each month if you are dollar cost averaging. Don’t be distracted by the manias that are starting to crack. Instead, stay disciplined and don’t try to outsmart the market as you continue to accumulate. For those of you who are accumulating your favorite high-quality mining shares, continue to dollar cost average in May.
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