The net short gold position of
commercial dealers dropped to
a 35 week low as of November 15,
2016, but are still large. The large speculators
(hedge funds and managed money)
took their losses and the position is
the lowest since the middle of March.
However, historically these positions
are still large.
The KITCO Gold Survey (attachment 2)
shows a neutral short term picture (1 week).
The Gold Barometers show no oversold
position (attachment 3).
In silver, net commercial dealers only
reduced marginally the positions as did
the large speculators. The positions are
historically still very large.
The 30-minutes gold chart (attachment 5)
indicates that gold closed on Friday, at
4 pm New York time, at 1,208 per ounce
for a loss of $ 19 per ounce.
The gold continuous futures contract shows
that gold held the 1,210 per ounce level for
already 3 times (attachment 6). The overall
picture is really not promising but gold might
try to rally again from the US$ 1,210 level in
the short term.
The Point&Figure chart of the Gold Bugs
Index (HUI) (attachment 7) shows that
chart completed a Head&Shoulder Formation
and broke through on the downside at 196.
Also the uptrend is broken (blue line)
Currently a triangle formation is in the
making. There is strong resistance on the
upside at 196 (currently 182) or about 7-8%
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