IT HAS HAPPENED!
Goldman Sachs covered their remaining 69 short TOCOM gold contracts on the very last trading day of the contract month. THEY HAVE NOW ZERO CONTRACTS OPEN IN GOLD. ……….THEY ARE COMPLETELY OUT OF THE TOCOM GOLD MARKET!
This is NOT a coincidence. Take a look at the chart below. I have been tracking their position on the TOCOM every day for the last 3 years. On no other exchange in the world is it possible to know what each trading house position is. Goldman Sachs reached a maximum net short position of 52000 contracts (52 tonnes) in May 2006. They have since been steadily covering the position. Their intention was so clear to me that I have been publishing this graph for more than 2 years showing the linear channel decline of their position. I predicted when GS had covered (or was net long) the gold price would take off. You can see that when GS first went slightly net long in October 2008 it coincided almost exactly with last year’s low in the gold price! The gold price has been rising ever since. The gold price just last week broke above $1000 for only the second time in history and two days later Goldman has reduced their position to ZERO. Had the trend of the last 30 months continued they would have gone significantly NET LONG. I would imagine cartel headquarters has told them if you want to go long do it on any exchange but the TOCOM because Adrian Douglas will broadcast it to every gold investor on the planet! And trust me I would have too!
I think this is yet another Victory for GATA!
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