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Gold Shorts Cover At Fastest Pace In 13 Years

Posted By admin On August 12, 2013 @ 11:04 am In Money Watch | Comments Disabled

Zero Hedge [1]
August 12, 2013

Gold shorts covered an enormous 23,518 futures contracts last week – the equivalent of 2,351,800 ounces of gold. With JPMorgan appearing to be calling everyone (here [2] and here [3]) to get their hands on gold to deliver, it seems our concerns over a short-squeeze are starting to solidify [4]. The last time shorts collapsed at this fast a rate was in the 1999/2000 period which saw a considerable 33% squeeze ramp in gold prices over the space of 3 weeks in the fall of 1999. Notably, the gold short position still remains huge compared to historical values – having fallen back only to the previous all-time record high levels (i.e. plenty of room for moar squeeze). In addition to this surge in covering, Gold ETFs saw their first inflows in 2 months.

 

Gold Shorts Cover At Fastest Pace In 13 Years 20130812 Gold1 0 [5]

 

as Gold ETFs saw their first inflows in 2 months…

Gold Shorts Cover At Fastest Pace In 13 Years 20130812 Gold3 0 [6]

 

and the last time we saw shorts cover this size, prices surged…

Gold Shorts Cover At Fastest Pace In 13 Years 20130812 Gold2 0 [7]

 

Charts: Bloomberg


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URL to article: http://www.prisonplanet.com/gold-shorts-cover-at-fastest-pace-in-13-years.html

URLs in this post:

[1] Zero Hedge: http://www.zerohedge.com/news/2013-08-12/gold-shorts-cover-fastest-pace-13-years

[2] here: http://www.zerohedge.com/news/2013-08-07/hello-hsbc-jpmorgan-we-urgently-need-some-your-gold

[3] here: http://www.zerohedge.com/news/2013-08-08/hello-scotia-mocatta-jpmorgan-we-urgently-need-some-your-gold

[4] our concerns over a short-squeeze are starting to solidify: http://www.zerohedge.com/news/2013-07-21/gold-breaks-above-1300-shorts-cover-most-4-months

[5] Image: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/08/20130812_Gold1.jpg

[6] Image: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/08/20130812_Gold3.jpg

[7] Image: http://www.zerohedge.com/sites/default/files/images/user3303/imageroot/2013/08/20130812_Gold2.jpg

[8] Is JP Morgan Shifting Its Silver And Gold Shorts To Non-US Domiciled, And Thus Unregulatable, Banks?: http://www.prisonplanet.com/is-jp-morgan-shifting-its-silver-and-gold-shorts-to-non-us-domiciled-and-thus-unregulatable-banks-2.html

[9] Insiders Exit Shares at the Fastest Pace in Two Years: http://www.prisonplanet.com/insiders-exit-shares-at-the-fastest-pace-in-two-years.html

[10] Demand for gold at an all-time high: http://www.prisonplanet.com/demand-for-gold-at-an-all-time-high.html

[11] Food Inflation Coming To A Household Near You, As Wal-Mart Hikes Prices At Fastest Pace Since Early January: http://www.prisonplanet.com/food-inflation-coming-to-a-household-near-you-as-wal-mart-hikes-prices-at-fastest-pace-since-early-january.html

[12] Central Banks Dumping Gold At A Torrid Pace: http://www.prisonplanet.com/central-banks-dumping-gold-at-a-torrid-pace.html

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