Banks Continue Covering Gold & Silver Shorts

Banks have been reducing their short positions in gold and silver over the past week, with gold's short position decreasing to under 200,000 contracts and silver's to under 30,000. This reduction follows a period of record high short positions, and while the banks' positions are still short, they have been significantly reduced in recent weeks, potentially indicating a shift in market sentiment.

Gold & Silver Shorts

• 00:00:05 Banks have reduced their short positions in both gold and silver. The CFTC report from November 19th shows a reduction of 6,000 contracts for gold, bringing it under 200,000 contracts, and 3,000 for silver, bringing it to just over 30,000. These reductions follow a period of record high short positions in September, where gold reached nearly 260,000 and silver around 44,000 contracts.

Market Sentiment Shift?

• 00:01:30 The reduction in short positions could suggest a potential shift in market sentiment. Historically, the banks' short positions have fluctuated, with periods where they even held long positions. While still short, the recent reductions are significant, possibly pointing towards a change in the banks' outlook on the precious metals markets. The speaker mentions that the prices of both gold and silver rose over the week ending November 19th, which coincided with the reduction in short positions.