Quick Update On Futures Positioning
The latest Commitments of Traders report showed mostly the same themes as prior weeks. "Smart money" hedgers are holding:
- Massive (and growing) shorts in gold and silver
- Growing (but not extreme) positions against non-US dollar currencies
- Except for the yen, in which they are holding near-record short positions
- Decreasing enthusiasm for the grains
- Near-record (and growing) bets against sugar
For gold, their current positions against the metal have been matched only two other times in its history.
Neither one led to a longer-term peak in gold, but both did precede multi-month consolidation. That has been a concern for gold for weeks and continues to be so.