With the upcoming Swiss referendum, and all manner of predicted disruptions in the gold market promising to send the price up very fast, I thought that it might be a good time to break out the "Squeeze Report" on COMEX gold. (Some of you have been around long enough to know how this works.)
The December Gold contract is coming to an end and by the end of November CME Clearing Members with open contracts in COMEX Gold will be asked what their intentions are with respect to delivery.
- Those who are short will have to deposit physical gold into one of three depositories specified in the CME delivery rules, ready for delivery; and
- Those who are long, will have to deposit the money required to pay for the gold into the appropriate CME settlement account.
It is at this point that we can watch the tide going out and find out who is wearing speedos!
We can monitor the progress of the expected squeeze watching the change in the open interest in the CME Daily Settlement Reports:
http://www.cmegroup.com/trading/metals/precious/gold_quotes_settlements_futures.html
The February column has been included to show readers where the price risk has gone to.
I apologise to those members of the gold forum who have been through this before, but we have to teach to newbies.
Cheers
