Gold $1,400 - Silver $24 - Moving To The Sideline
The following shows the recent draw down in gold shorts as they have scrambled to cover (to cover a short you must buy it back in the market - this can create what is known as a "short squeeze"). I showed this chart at its peak and discussed the coming short squeeze back in July when gold was under $1,200 in As Paper Gold Shorts Push All In China Buying Goes Parabolic. The scary part is that at this level we are still sitting at close to all time record short positions. It will be interesting to see how it plays out in the weeks ahead.