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COMEX Gold Producer-Merchants Report Record Low Short Positions

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As shown in the recap in the story posted below, the class of bullion futures traders the CFTC calls Producers Merchants Processors and Users (whom we have dubbed the Gold Trade because it represents a large portion of the market for gold metal) saw fit to cover or offset a whopping 42.9 % of their remaining net short position (from 26,074 to just 14,897 contracts net short).  This, on a 2.3% move lower for the price of gold itself. 

In the process the Gold Trade also notched its lowest ever gross short position, down to a paltry 64,916 contracts short gold, as shown in the graph below. 

There seems to be little motivation for those involved in the Gold Trade to hedge with gold at or under $1300 in other words. 

That is all. 


Source: http://www.gotgoldreport.com/2014/05/comex-gold-producer-merchants-report-record-low-short-positions-.html


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