Speculators Dump Gold But Price Goes Up Anyway

Gold last traded at $1,735 an ounce. Silver at $18.33 an ounce.

NEWS SUMMARY: Precious metal prices eased back on short-term profit-taking. U.S. stocks rose slightly as traders grappled with civil unrest around the country along with the reopening of the economy from the coronavirus pandemic.

MISH/THE STRET--- "Judging from futures and alleged jewelry demand, the price of gold ought to be falling. But it isn't. Let's explore what's happening with the price of gold and why. In the futures world, for every long there is a short. Contracts net to zero. The commercials are producers who sell their gold and the broker-dealers who are hedged. Note that commercials are down 111,290 contracts since February. This is not 'covering shorts' as often claimed. Rather it reflects speculators dumping contracts. Managed money dumped 125,456 contracts. Yet, the price of gold rose from $1,644.60 to $1,751.70....Normally when speculators add contracts, the price of gold rises and when speculators are liquidating contracts, the price falls. But not even that is happening now."