Shift In These Traders’ Positions Could Mean Big Bounce in Metals Prices Soon

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A recent change in the amount, type and number of short commercial positions on gold and the US Dollar should give optimism to gold and silver investors.

Here’s the report from Jason Goepfert at SentimenTrader and King World News:

“… commercial hedgers have been dramatically reducing their short positions recently in the silver market. The commercial shorts still remain at a level that raises concern. However, that does not mean that the price of silver cannot head significantly higher in the short-term.

“… commercial hedgers have continued to dramatically reduce their short positions on the recent takedown in the price of gold… commercial hedgers have continued to add aggressively to their short positions on the recent rally in the US Dollar.

The bottom line is that the commercials have been massively covering their short positions during the orchestrated takedown in the gold and silver markets and they have been increasing their short positions in the U.S. Dollar. This means there could still be a lot of room to the upside in the gold and silver markets and potential downside in the dollar, but the commercials may still attempt to cover more of their gold and silver shorts in the near-term.”

While the paper manipulators may keep the price of gold and silver suppressed in the short-term, it looks like they realize they can’t keep it contained forever. History shows over and over that fundamentals always win out over insider manipulation in the long-run.

How soon do you think that fundamentals will win out for gold and silver?

Tell us your thoughts in the comments section below.