Of course, we are all left wondering why the Fed's Bernanke his presidency ended earlier than some of the terms he needed to and decided not to stick around to face the consequences of his actions while he was on the printing press on the keyboard has a button.
But this is not our subject. As gold for $ 800? They may have to wait. Bullion banks book their business quietly turned into a long-term net. And, in the wash-rinse repeat fashion, hedge funds and small retailers may take the other side of the net and went COMEX gold short
It is very rare for hedge funds to run the net short position. Since CFCT / CME began COT report detailing more trading "buckets", it was the only hedge fund net short on the two occassions - now and in the July / August earlier this year. Gold systems move 11% in August.
At the end of a 15-year-old that I have participated in the precious metals markets, when bullion banks take extreme positions - whether long or short - significantly in the market always seems to move in their favor. The funny thing - that - because the law of averages suggests a remote possibility for this event occur with 100% certainty. We know CFTC never seemed to be able to find any indications of irregularities and manipulation in the market - wink, wink.
Currently the hedge fund has the second largest net short position in the history of reports COT. Again in early August net briefly hit a little over 14K contracts. This explains the irregular trading in gold this past few weeks. I would also be willing to bet that hedge funds will show the largest net short positions than ever when the COT report is released.
Oh ya. There was one time when other hedge funds - Net short, and it was only for a few days - and labeled as "large speculators" before 2006: early 2000, right before launching the bull market in gold.