COT Report Gold/Silver

This page is created to monitor the COT report for gold and silver

Whenever the commercials turn long (purple bars go up), the price will bottom out and vice versa.

Open interest (green line) indicates the direction of the price:

   – When the price declines and the open interest increases: the silver price will keep falling.

   – When the price rises and the open interest increases: the silver price will keep increasing.

   – When the price declines and the open interest decreases: the silver price will reverse to the upside. 

   – When the price rises and the open interest decreases: the silver price will reverse to the downside.

Chart 1: COT Gold

Chart 2: COT Silver

Open Interest explained here by BrotherJohnF:

Update on Silver Net Short Positions: LCNS

On Monday 6th of August, the Financial Times leaked the news that the silver manipulation probe is likely to be dropped by the CFTC. It turned out that this news was premature. One of the 5 CFTC commissioners, Bart Chilton, said on 08 August 2012 that the investigation will continue as silver manipulation did occur. The silver manipulation probe was initiated in 2008 following a number of allegation of silver manipulation. Bart Chilton already found evidence of silver manipulation in 2010 and intends to search for additional evidence of this manipulation of the silver price.

How this all connects to the CFTC’s LCNS numbers of July 2012, you can find out here.

Chart 1: LCNS Positions

Silver Net Short Positions Hit Record Low Again

In my previous article about net short silver positions I said that silver would explode upwards once the net silver short positions started to increase.

Today the June 2012 numbers came out and we see that the net short positions have not gone in an uptrend yet. 

So we wait…, until the spring suddenly unwinds.

Chart 1: LCNS Net Short Positions in Silver

Data: http://www.cftc.gov/OCE/WEB/data.htm