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Tuesday, September 3, 2013

Gold Surges Over $40 As COMEX Shorts Collapse To 7-Month Low


Spot gold prices have surged over $40 from Sunday's knee-jerk lows as once again lower prices have encouraged demand. Gold had shfted back to unchanged from Friday's close before Boehner spoke but since then has accelerated over $20 higher.

Gold shorts in the futures and options markets have dropped for 6 of the last 7 weeks. The 60% drop in the non-commercial short position represents a massive 81,700 contracts(8,170,000 ounces or ~$10.6 billion worth of notional 'paper' gold).

Gold's 21% rise from the lows in the last 2 months is among the fastest rises since 1999; and GLD holdings have risen for the last 6 days in a row.

Charts: Bloomberg

Bonus... Spot the difference...
From Zero Hedge

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