COMEX

Gold and silver had a sharp run-up in the last two weeks of 2017. However, the abrupt move in gold was accompanied by a rapid rise in the gold futures open interest on the COMEX. The “commercial” – aka “the banks” – net short position in COMEX gold futures has increased by 100,000 contracts (from 120 net short to 220k net short) in just four weeks through the most recent COT report. That’s a net paper gold short of 22 million ozs, or 623 tonnes of paper sold short.

A short-term bounce in the US dollar, which suggests gold may continue to consolidate for the time being, should provide interesting entry points for those looking to profit from the resumption of the longer-term rally in the precious metal.

The world may have already produced the most gold in a year it ever will, according to the chairman of the World Gold Council.

After posting a solid performance over the summer, gold is on the verge of testing what can be considered major technical resistance around $1378. The precious metal may be about to get its shine back in a big way, as a number of significant technical developments suggest a strong potential for the resumption of the bullish medium- and long-term trend.

Gold bugs around the world can use my key prices zones of $1315 - $1295 and $1260 - $1270 now to get tactically positioned in key gold stocks to surf the golden institutional wave.

To understand why the somewhat cliche 10% gold investment allocation mantra may be somewhat misleading today, some historical context is required.

The latest extremely bullish COT charts are not negated by the dollar being oversold here and some of its indicators looking positive. The bigger picture is that the dollar may be headed for a breakdown and severe decline or even a crash.

For years, we've watched JPMorgan stockpile what is alleged to be physical gold and silver in their Comex vaults. However, something has changed over the past four months and we thought we should bring this to your attention today.

The gold rally that began on Dec. 15, 2016, is poised to continue despite the trauma of the flash crash. The crash represents a gift to investors. We now have a better entry point for what will still be much higher gold prices later this year.

A well-known coffee company says, “Respect the bean”. That may be good advice, but I think it’s vastly more important for gold and silver bugs to “Respect the bar”!