Silver COT Update and Analysis: Short Covering Continues
January 31, 2011 by goldguru · Leave a Comment
The bullish trend remains as the structural changes in the Commitment Of Traders report continues to become more bullish. Despite the downside pressure over the past couple of weeks, the fourth and eighth largest commercial traders continue to cover their massive net short positions, albeit in a very controlled fashion, paving the way for much higher prices in the future. The total net short position of all commercial traders declined more than 2,000 contracts, including over a 300 contract reduction in the top four commercial traders, and over a 1200 contract reduction among the eight largest commercial traders. This is indicative of the commercial traders recognizing the tightness in physical market.
