Note the build in the longs and the reduction in the shorts as those funds who gambled on a breakdown in the price of the metals and sold them down near their support levels, were caught flat-footed and forced to cover.
The first chart is that of Silver:
The following chart is of Gold. Note that since May of this year, when gold was trading below the $1550 level, and when hedge fund short positions were at a maximum, those hedge funds playing gold from the short anticipating a breakdown in the price, were forced out and have been covering ever since. Meanwhile, new longs are coming into the market in a big way putting further pressure on the short camp.
