Yesterday the USD Index broke decisively below the neckline of a head and shoulders topping pattern to the USD year long rally:
There are still a huge number of those that are short gold that still have to get out of their positions. That means huge buying still to be done. From Le Metropole Cafe on Wednesday, January 5:
"This is staggering. The gold open interest only rose 2277 contracts to 325,524 on a $14 up day. To put this in perspective, years ago the open interest went up 77,000 contracts over a period of weeks and all gold was allowed to go up by The Gold Cartel was $7.
This tells me GATA is right on the money about the shorts panicking in order to extricate themselves from their short positions. How are they doing? Not so good. By my calculations all they covered yesterday was around 40 tonnes, max. The total short position is above 10,000 tonnes. If only 10% of the minimum number of shorts plan to cover, it will take another 25 days like yesterday. 25 TRADING DAYS!"
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