UNPRECEDENTED: Bullion Banks Take Losses On 124 Tonnes Of Scarce Physical Gold, Plus Hedge Funds Also Exposed To Gold Short Squeeze Along With Bullion Banks

Bullion banks have just taken losses on scarce physical gold, plus some hedge funds are also being caught in the short squeeze along with the bullion banks.

What Macleod points out here is quite fascinating in terms of the struggle the bullion banks continue to face on their $38 billion short positions in the gold market

Conclusion
Since the hedge fund category provides the liquidity for Swaps to close their bear positions and they have reduced their net long exposure, the market has tightened against the Swaps. And the smart money in Other Reported tells us the gold price should continue to rise.

The Commitment of Traders report that basically suggested that the commercials were buyers of gold and silver at nice, big fat losses for the first time ever in probably 35 years. And they still have a major short position. One of the guys I read, he describes it as an event that has happened ‘never times before.’ Like, it’s never happened before!”