zaterdag 11 april 2015

Managed Money Short Gold Update

Managed money shorters have been short squeezed in the past weeks, against a rising gold price as I predicted, the outlook for precious metals is going to be a little bit muted now, especially for silver.

Although I don't expect any short squeezes going into next week I need to point out something interesting.

GLD has seen small outflows, which means hedge funds are again selling their physical gold into the market. Also the total gold ETF's backed by physical gold saw outflows of about 20 tonnes a month. This has put pressure on the gold price.

But I don't believe we will see further significant outflows as the COMEX gives us a clue on this.

Registered gold at the COMEX is hitting record lows again (blue chart below is plunging).

And paper gold leverage (see below) is clearly hitting a one year high, indicating a definitive bottom in the gold price. January 2014 (the spike in the chart below) is happening all over again, so I expect gold to go back to $1300/ounce again in short notice.

And precious metals premiums were up across the board, but not by a lot.

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