|Commentary from Ed Steer on gold and silver:|
We're now down to the last week of summer in the Northern Hemisphere...and once we get past the Labour Day long weekend, I would make the assumption that all bets will be off.
But, having said that, there's still the little matter of what JPMorgan et al did, or didn't do, in the gold and silver markets since the 1:30 p.m. COT cut-off last Tuesday. Their handiwork in Wednesday's and Thursday's big rallies won't be know until the Commitment of Traders Report comes out this Friday. Today, at 1:30 p.m. Eastern time, is the cut-off for that report.
Both Ted Butler and I feel that the Commercial net short position will rise a considerable amount once again...and the possibility of another 'in your ear' moment is almost a certainty. It's just a matter of when...and how bad it will be...and how long it will last. Will it happen starting right after the cut-off...or maybe next week sometime. Maybe they'll get overrun. But, as Ted Butler has pointed out to me over the last ten years or so...if they do, it will be for the very first time.
Not only do 'da boyz' have to get out of their now larger short positions in the Comex futures market, there's also the little matter of the big short position that they now carry in GLD...but particularly SLV. This is something else they'll be gunning for when the time comes.
All four precious metals are already well into overbought territory, so nothing has changed since last Friday...and here's the 6-month silver chart as a 'for instance'. It appears that a top has been painted in silver...and the other three precious metals charts have a similar appearance.