Will the hundreds of thousands of contracts that the commercials are short have to be bought back? Will they have to BUY?
With gold up smartly this a.m. I notice that the price action of the gold stocks on loose footing. Looks like we have a tug of war between buyers and sellers.
Most miners have reduced or closed their forward sales. Those that are left sold forward have been trying to buy them back, and I haven't even heard of one miner adding hedges in the last year. The majors left with anything sold forward are : Barrick - 9.5 mm oz Anglogold - 9.5 mm oz There aren't any other big ones. That only accounts for 1/4 or the huge commercial short position. The other 3/4 of commercial shorts are? And where are these other shorts going to get gold?
Yeah I think silver will sell off pretty hard. There should be a correction coming http://www.commoditiesvue.com
usd has broken support of 75.62....i expect another test of the previous bottom...74something, then a reversal. gold will move up til then; again, do not see the same momentum in the gold stocks, and yes, many "gold bulls" are not participating in this leg up. with the usd bottoming, and the markets on level ground, find it less likely fed will cut....they don't need to, low usd will help the economy. the 75bp cut is having its effect. God bless MickyD's!
Oooops sorry When current price is between $900 to $1000 gold wil top out , then drop at least $100 dollars. I forgot a ZERO on the $100.