Jump in Shorts
Last Week = (101,695 + 41,554) minus the jump (13,396 + 11,449) = 118,404
Increase in shorts = (13,396 + 11,449) = 24,845
Percentage Increase = 24,645 / 118,404 = 20.98%
Frequently one hears comments like "commercial reduced their short positions".
While arguably accurate, it conveys the wrong idea.
Commercial traders, except for producers who do sell short, simply take the opposite side of the trade. The commercial traders are not net short, they hedge.
Thus it is a more accurate summation to call this for what it is: Long liquidation. Gold longs are increasingly unconvinced and are throwing in the towel.
Like Hickey, I believe speculators throwing in the towel and betting against gold is ultimately bullish.
Hickey notes "The shorts have to cover." It's important to note that applies to speculators, not producers or hedgers.
Mike "Mish" Shedlock