As you can see on the chart, they have ramped up their net long holdings but even at that remain rather lightly invested in this market, even at current price levels seeing that they are still well off their recent peak holdings.
Swap Dealers and Commercials are once again plying their craft of "Sell, Sell, Sell".
The other large reportables are steadily drawing down their net long holdings and are also at a relatively low level of exposure to the long side compared to the recent past.
The general public, the small specs, are showing some interest in the long side again.
Hi Dan,
ReplyDeleteGreat commentary! You're on my daily visit list
Have you seen the FOIA release out of GATA today? Very interesting stuff!
http://www.gata.org/files/FedMemoG-10Gold&FXCommittee-4-29-1997.pdf
Would love to get your thoughts on it, Thanks!
Hello Zergling;
ReplyDeleteYes, I did see that recent post from GATA.
As far as I am concerned it is another piece in the puzzle that GATA has so painstakingly worked to put together over the years. My take on this is that it confirms in my mind how keenly interested the Fed is in the price of gold. Anyone who would say that the US monetary authorities are indifferent to what the gold market is doing has simply chosen to be wilfully ignorant.
Gold is an enemy to Central Bankers of the West, even Alan GReenspan back in his early days understood this.
Testing edit of profile...
ReplyDeleteSuccess! Larry replaces Savannah Guy.
ReplyDeleteNothing against Savannah - it's a very nice place to live.