Gold interest from big institutional players point towards higher prices as shorts dump their Comex positions

by Kenneth Schortgen, Daily Economist:

While the weekly Commitment of Traders (COT) report isn't always the best indicator for the future direction of precious metals, it does provide a snapshot of what big institutional players are doing in regards to futures and interest.

On Aug. 13 the latest COT report came out showing that short covering is continuing in the futures markets as positions on the downside dropped to their lowest levels since September of last year, and just before the election.  In the meantime, long positions began to slowly increase, which when coupled with recent remarks from billionaire investors like Ray Dalio, signal that gold should continue to move higher and soon breach the $1300 price level.

The latest Commitment of Traders ((NYSE:COT)) report, showed another rise in speculative longs for the week, though it was a bit subdued. The big change in gold speculative positions came on the short side as speculative shorts lowered their own positions to around 29,000 contracts outstanding – the lowest levels of speculative gold shorts since last September when gold was well over $1300. 
Silver, the best performing precious metal on the week, also saw a similar drop in short interest as longs essentially stayed put. - Seeking Alpha

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