by Alasdair MacLeod
In quiet trading this week, gold rose $12 from last Friday’s close to $1911 in morning trading in the European time zone, and silver rose 70 cents to $24.82 over the same period. A mid-week rally took both metals higher, to $1931 and $25.30 intraday respectively on Wednesday.
Bullion banks remain desperately short of the Comex gold contract, as shown in the next chart.
[…] All attempts to reduce their shorts have recently failed. The official story is that short positions on Comex are hedging long positions in London, and while the LBMA claims there is plenty of vaulted physical in London, they don’t tell you that it is nearly all pre-owned by central banks, ETFs and others, and that physical liquidity is almost non-existent.
As the chart below shows, the Managed Money category (hedge funds) has been reducing its net longs to below its long-term average position, which is shown by the pecked line.