by David Brady
Sprott Money
Positioning & Price Trends in Gold & Silver
Gold and Silver positions on the COMEX futures exchange are published weekly in what is called the Commitment of Traders Report, or “COT” Report. The COT positioning data shows the futures positions of various participants in the markets and in every asset class, from 10-Year Bonds to Soybeans. My focus is on Gold and Silver.
Key Players in the Gold & Silver Markets
The most significant players are the Bullion Banks and the Money Managers, otherwise known as the Funds. The Banks are considered the smart money because they tend to be right at peaks and troughs in their net positions. Net positions are simply the sum of the long positions less their shorts. Said differently, they are massively net short at major peaks in price. They tend to be close to neutral or even net long at major lows.