Silver ETF
A bullish setup in leverage money flows, i.e. statistical concentration by key players, should setup another attack of $50.
As of 8/16, the key players remain largely uncommitted. Since money tends to move behind the cover of fear, the process of concentration most likely began after yesterday’s sharp decline. I will be watching the movement of money for a definable setup in the coming weeks.
Silver London P.M Fixed and the Commercial (C) & Nonreportables (NR) Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest
The following chart provides another view of concentration among the players.
Silver (SLV) and the Commercial (C) Less Nonreportable (NR) Traders COT Futures And Options Stochastic Weighted Average of Net Long As A % of Open Interest
Headline: Gold falls $200 from Tuesday's record high
Gold extended losses on Thursday to fall as much as $200 from Tuesday's record high, as investors cashed in scorching gains in the metal after the CME Group hiked trading margins for the precious metal for a second time this month.
Investment appetite for gold has cooled ahead of a widely awaited central bankers' meeting at Jackson Hole, Wyoming, as speculation grows over whether or not the Federal Reserve will signal a further round of U.S. monetary easing.
More quantitative easing -- or money printing -- for the Fed could significantly lift gold, but it could have further to correct if no additional action is signaled.
Spot gold was down 2.2 percent at $1,711.99 an ounce at 7:01 a.m. EDT, having earlier touched a low of $1,702.44.
Investors have cashed in on gold's latest rally after the yellow metal surged nearly 20 percent in early August to record highs at $1,911.46 an ounce.
"In a sense the decline is just subtracting the frothy increase (from the market)," said Mitsubishi analyst Matthew Turner. "That increase has been going on since around $1,600 an ounce, so it is hard to see where the bottom lies."
But the metal's overall uptrend, which has seen it climb more than 20 percent this year, is still intact, analysts said.
"To be convinced you'd seen the top of the market you would have to see more signs of the issues that had lifted gold being resolved, such as the euro zone crisis, and U.S. growth coming back," said Turner.
Spot prices fell 4.3 percent on Wednesday, their biggest one-day drop since December 2008, after U.S. durable goods data beat expectations. U.S. gold futures also posted their sharpest slide since 1980.
Source: reuters.com
