#Gold & #Silver Commitments of Traders

#Gold shares are not oversold but are in neutral territory and physical gold and silver is in neutral territory and this for weeks already.

Commitments of Gold Futures Traders show

large speculators (hedge funds and money

managers) reduced their long positions taking

the losses. Net commericial gold traders

reduced their short positions cashing in gains.

Net commercial dealers almost always win

against large speculators, although they have

sometimes to be very patient. Positions are

still very large but we like what we see that

short sellers are satisfied with their gains

(attachment 1).

As per Dr. Murenbeeld's Gold Monitor the

speculators on COMEX have finally cut back

on their net-long positions by 159 tonnes

equivalent through last Tuesday. We are sure

long liquidation had further accelerated during

the later part of the week.

The Gold Barometers (attachment 2) reveal

that gold shares are not oversold but are in

neutral territory and physical gold and silver

is in neutral territory and this for weeks already.

The KITCO Gold Survey (attachment 3) indicates

that Wall Street is bearish for this week (53%)

and Main Street (Retail Investors) are about the

same bearish or bullish.

The hourly gold chart (attachment 4) shows gold

not having had a good week with continued downward

pressure. As per close on Friday in New York,

at 4 p.m., gold closed at US$ 1'248 per ounce for

a loss of US$ 32 per ounce on the week. The gold

weekly continuous futures chart shows gold has

support around US$ 1'200 to US$ 1'220 and the

Reverse Head & Shoulder formation, formed since

2013 is still in tact (attachment 5).

The ARCA Gold Bugs daily chart (attachment 6)

indicates gold shares made a reversal on Thursday

and closed slightly positive on Friday. This is good

news, at least for the short term. The HUI 3-year

chart (attachment 7) shows the index has good

support around 160 to 170 points but it must hold

that level. Otherwise the index could revisit the

huge bottomed formed in the second half of 2015

at around 100 points.

Commitment of Silver Futures Traders indicate

that positions have sharply diminished. This is

a great sign. Large speculators reduced their long

positions drastically and net commercial silver

dealers covered shorts in size (attachment 8). If this

trend continues silver could stage a sizeable rally.

Attachment 9 is the Silver continuous futures

Point&Figure chart. The silver price has formed

a bottom around the US$ 14 per ounce level for the

last 3 years. This bottom is only about 10% lower

from current silver prices. Short sellers know this

and having large short positions at potential bottom

prices bear high risk. Hence it is safer not being

exposed on the short side.