The Commodity Futures Trading Commission (CFTC) publishes a weekly report that summarises the current positioning of speculators and commercial traders across a broad range of commodities that trade on the Exchange. The latest Commitment of Traders (COT) report shows that large speculators are currently holding a huge short position in gold of 215,467 contracts, 200% more than they held a few months ago and one of the largest short positions on record.
Meanwhile, the Commercial traders, who buy the metal from the gold producers and then hedge their position by going short in the futures market, are net long gold when you include both futures and options positions. To give readers an idea of how extreme this position is, the last time the Commercials were net long gold was all the way back in 2001 when gold was trading at $250, before the bull market started. Gold is getting ready to launch.
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