Gold and Silver Disaggregated COT Report (DCOT) for June 1

HOUSTON -- This week’s Commodity Futures Trading Commission (CFTC) disaggregated commitments of traders (DCOT) report was released at 15:30 ET Friday.  Our recap of the changes in weekly positioning by the disaggregated trader classes, as compiled by the CFTC, is just below.  The short covering rally we anticipated has indeed arrived on the heels of a disappointing U.S. non-farm payroll report.  The jobs report was merely the obvious catalyst for the major rush into precious metals today, but it is only the tip of a much larger and very menacing ecomomic iceberg lying directly in the path of the "U.S.S. Federal Reserve."      

In the DCOT table below a net short position shows as a negative figure in red. A net long position shows in black. In the Change column, a negative number indicates either an increase to an existing net short position or a reduction of a net long position. A black figure in the Change column indicates an increase to an existing long position or a reduction of an existing net short position. The way to think of it is that black figures in the Change column are traders getting “longer” and red figures are traders getting less long or shorter.

 

All of the trader’s positions are calculated net of spreading contracts as of the Tuesday disaggregated COT report.

(DCOT Table for Friday, June 1, 2012, for data as of the close on Tuesday, May 29.   Source CFTC for COT data, Cash Market for gold and silver.) 

For those who have kept up with our commentary in the Memorial Day video, we note that the Managed Money traders (hedge funds, commodity trading advisors, and other “funds” that trade futures on behalf of others) actually increased their short positions in both gold and silver futures as of Tuesday.  The normally net long “funds” increased their pure short positions in gold by 2,049 to 40,857 contracts short. In silver they added 271 contracts to show 14,596 contracts short.  (Both very high short positions for the funds.) 

Continued...

Gold, Silver Spike Foretold by Indicators

HOUSTON -- It’s not like the signs were not there to warn us of the large move higher for gold and silver today.

3-Days, hourly terms. 
  
Continued… 

COT – Funds High Short Positions Major Rally Fuel for Gold, Silver

HOUSTON – As a courtesy to our blog readership, just below is a video update we shared with Got Gold Report Subscribers on Monday, May 28.  The video deals mainly with the changes in the most recent CFTC Commitments of Traders (COT) report for gold and silver futures, including some exciting developments in the structure of the very low Managed Money (hedge funds, commodity trading advisors, etc.) net long position.

Got Gold Report - Chart Appendix for May 28, 2012 GGR

Vultures (Got Gold Report Subscribers) please log in to the Subscriber pages and navigate to the Got Gold Reports Section to view an appendix of charts for the special Got Gold Report released Monday, May 28.  The appendix contains the charts used which are not already linked in the subscriber section

To continue reading, please log in or click here to subscribe to a Got Gold Report Membership

By the Numbers for the Week Ending May 25

This week’s closing table is just below.   

 
If the image is too small click on it for a larger version.

Note the very large increase in ICE commercial net short positioning for the DXY (Dollar Index) as of Tuesday (on a 24-tick rise to 81.49 for the COT week Tuesday to Tuesday), yet the U.S. dollar index rose another 91 bps from Tuesday to Friday, closing at 82.40 -- the highest weekly close for the USD since August of 2010.

Continued...

Gold and Silver Disaggregated COT Report (DCOT) for May 25

SOUTHEAST TEXAS -- This week’s Commodity Futures Trading Commission (CFTC) disaggregated commitments of traders (DCOT) report was released at 15:30 ET Friday.  Our recap of the changes in weekly positioning by the disaggregated trader classes, as compiled by the CFTC, is just below. 

In the DCOT table below a net short position shows as a negative figure in red. A net long position shows in black. In the Change column, a negative number indicates either an increase to an existing net short position or a reduction of a net long position. A black figure in the Change column indicates an increase to an existing long position or a reduction of an existing net short position. The way to think of it is that black figures in the Change column are traders getting “longer” and red figures are traders getting less long or shorter.

All of the trader’s positions are calculated net of spreading contracts as of the Tuesday disaggregated COT report.

(DCOT Table for Friday, May 25, 2012, for data as of the close on Tuesday, May 22.   Source CFTC for COT data, Cash Market for gold and silver.) 

CME Lowers Margin for Gold Futures

On Thursday, May 24, the Chicago Mercantile Exchange Inc., Clearing House Risk Management announced lower initial bond and maintenance (margin) requirements for 100-ounce gold futures contracts (GC). 

Initial bond requirements decline 10% for Spec traders from $10,125 to $9,113 per 100-ounce contract. Initial bond rates for Hedge traders drop 10% from $7,500 to $6,750 per contract.

Maintenance (margin) requirements for both Spec and Hedger members dip 10% from $7,500 to $6,750 per contract.

Similar margin reductions were announced for the COMEX  “MINY Gold Futures” (QO) and 10-ounce contracts (MGC).  

The new rates will be effective after the close of business on Tuesday, May 29, 2012.

May 24, 2012 (Source: CME Group)

http://www.cmegroup.com/tools-information/lookups/advisories/clearing/files/Chadv12-221.pdf

Precipitate Completes its Prospectus Offering and Lists on the TSX Venture Stock Exchange

 Vancouver, British Columbia. Precipitate Gold Corp. (the "Company") is pleased to announce that it has completed its initial public offering ("IPO") of 5,500,000 Shares at a price of $0.40 per share for aggregate gross proceeds of $2,200,000.

The TSX Venture Exchange (the "TSXV") has accepted the Company's listing application, and the Company's common shares will commence trading on the TSXV at the opening on Tuesday, May 29, 2012 (the "Listing Date") under the trading symbol "PRG".

Gold Rises In EUR and CHF in May and Outperforms Stocks Which Fell Sharply

Our friends at Stephen Floods GoldCore.com write today... Gold edged down on Friday heading towards its 2nd week of losses as some investors remain on the sidelines. Traders await clues from US non-farm payrolls data for May at 1230 GMT. Periphery European bond yields have risen again and unemployment in the Eurozone has risen to a record high. There is a distinct feeling that there is a massive financial volcano that may erupt at any moment.

Gold, Silver Spike Foretold by Indicators

HOUSTON -- It’s not like the signs were not there to warn us of the large move higher for gold and silver today. 3-Days, hourly terms. Continued…

Strategic Metals To Drill Seven Carlin-Style Targets In Rackla Gold District, Yukon

May 31, 2012 - Strategic Metals Ltd. (TSX-V:SMD) (Strategic or the Company) is pleased to announce exploration and drilling plans for its wholly-owned Midas Touch project and optioned Scarlet East project, both located in the Rackla Gold Belt of eastern Yukon Territory. The projects cover more than 1,200 sq km area of favourable, off-shelf carbonate-bearing stratigraphy that is prospective for Carlin-style gold mineralization. The property area adjoins the south side of claims where ATAC Resources Ltd. has

Money, Debt and Gold: Why Higher Gold Prices Are All But Assured

Our good friend Brien Lundin is presenting an exclusive free 15 minute webinar TODAY 12:00 PM ET. In this webinar, produced by Kitco, Brien will show how gold appears to repeating a very precise pattern, one that foretells a record-setting rally just ahead.

Gold Rises $40 As Markets Fall Sharply - Safe Haven "Tipping Point"?

Gold’s London AM fix this morning was USD, EUR, and GBP per ounce.Yesterdays AM fix was USD 1,548.75, EUR 1,244.98, and GBP 995.41 per ounce. Gold rose 0.38% or $6.00 in New York yesterday and closed at $1,564.80/oz. However the 0.38% gain does not convey the positive price action. This saw gold fall initially in unison with risk assets such as equities and commodities - including oil.

Capital Controls Have No Place in a Free Society

Commentary by the Hon. Ron Paul, (R) Texas. “The characteristic mark of a tyrannical regime is that it eventually finds it necessary to erect walls to keep people from leaving. This is why we should be troubled by the “Ex-PATRIOT Act,” an egregiously offensive bill recently introduced in the Senate. Following a long line of recent legislation and regulations attempting to expropriate more and more wealth from hard-working Americans, this new bill spits in the face of

COT – Funds High Short Positions Major Rally Fuel for Gold, Silver

HOUSTON – As a courtesy to our blog readership, just below is a video update we shared with Got Gold Report Subscribers on Monday, May 28. The video deals mainly with the changes in the most recent CFTC Commitments of Traders (COT) report for gold and silver futures, including some exciting developments in the structure of the very low Managed Money (hedge funds, commodity trading advisors, etc.) net long position.

Brazilian Gold Intersects 20 m Grading 2.02 g/t Gold on the Batistäo Project, Northern Brazil

Brazilian Gold Corporation (TSXV: BGC) is pleased to announce the completion of the Phase One drill program (678 m in 4 holes) on its wholly owned Batistäo project located approximately 30 km southwest of the town of Peixoto de Azevedo in Brazils northern Mato Grosso state. This region was the focus of a gold rush in the 1980s where 5 million ounces of unofficial production, mostly from shallow alluvial and laterite workings, is reported. The region benefits

SEMAFO Further Expands the Wona-Kona Deposit at Mana

MONTREAL, QUEBEC -- (Marketwire) -- 05/30/12 -- SEMAFO (TSX:SMF)(OMX:SMF) today announced drill results from the Wona-Kona deposit at its Mana Mine in Burkina Faso, returning consistent wide zones of mineralization and extending the gold oreshoots. These impressive results support the Corporations decision to revisit the mining scenarios and assess potential improvements to the Wona-Kona overall project economics.

Gold Capped $1,580 - Another Concentrated Burst Of Selling On High Volume

Our friends at GoldCore write this morning - Determined selling at the $1,580/oz level capped gold yesterday prior to a bout of sharp selling. This saw gold quickly fall $20 from $1,575/oz to $1,555/oz on heavy volume. Tuesday’s COMEX gold futures volume was well over 450,000 lots – which is close to the record for 2012 and volume more than doubled its 30 day average.

Precipitate Commences Trading on the TSX Venture Exchange

Precipitate Gold Corporation (Precipitate) is pleased to announce that the companys common shares commenced trading today on the Toronto Venture Exchange (TSX.V) under the trading symbol PRG.

Prosperity Goldfields Corp.: Spring Drill Program Identifies New Gold Zone At Kiyuk Lake, Nunavut

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 29, 2012) -Prosperity Goldfields Corp. (the Company or Prosperity) (TSX VENTURE:PPG) reports that assay results have been received from all twelve holes of the recently completed spring drill program of 2,652 m of drilling on its 100 percent owned Kiyuk Lake gold property (the Property) located in southern Nunavut.

Northern Tiger Resources Announces Non-Brokered Private Placement

Northern Tiger Resources Inc. (TSX VENTURE:NTR) announces that it will be offering a non-brokered private placement for aggregate gross proceeds of up to $1,000,000 (the Offering). The Offering will be: Common Shares to be issued as flow through shares (FT Shares) at a subscription price of $0.14 per FT Share; and Units (Units) at a subscription price of $0.12 per Unit. Each Unit will consist of one common share of the Corporation (Common Share) and one-half of

Riverstone Receives Higher Grade Drill Results at Goulagou II

VANCOUVER, BRITISH COLUMBA--(Marketwire - May 29, 2012) -Riverstone Resources Inc.(TSX VENTURE:RVS)(OTCQX:RVREF)(FRANKFURT:3RV)(Riverstoneor theCompany) is pleased to report results from ten diamond core drill holes on the 100% owned Goulagou II (GGII) Deposit, which forms part of the Companys flagship Karma Gold Project in Burkina Faso, West Africa. These holes are part of a program of drilling designed to extend and confirm the deposit to depth, and to collect material for metallurgical testing.

MacKay – Renewable Energy Not the Answer – Yet

While we are at it, we found this talk by David MacKay on renewable energy to be enlightening and even handed. The idiotic push by governments to force feed renewable sources of energy before they are economically viable should be exposed for what it is. To be charitable, it is spitting in the wind.

Boone Pickens - Natural Gas Talk

A worthwhile talk by our friend Boone Pickens on why people need to quit worrying about running out of oil. Instead we all need to think natural gas. Renewables are not now and likely never will be the total answer to our energy needs. Luckily we have learned to access the energy trapped in the source rocks and that technology has changed the debate. The energy for the future is natural gas on land and methane hydrate

Friday Levity – Birds, Bees and Frogs

Julia Sweeney shares a story about discussing the birds and bees (and frogs) with her eight-year-old daughter.

The Commencement Speech You Need to Hear

The speech below, forwarded to us by a long-time friend, is indeed a college commencement speech written by conservative commentator Neil Boortz and it is one we liberty-loving Vultures would love to see delivered at Texas AM University. As we say here in Texas, it’s a keeper. However, according to Truthorfiction.com, “The speech is from the pen of Neil Boortz and is posted on his website at www.boortz.com. Boortz tells TruthOrFiction.com, however, that so far, its never

CME Lowers Margin for Gold Futures

On Thursday, May 24, the Chicago Mercantile Exchange Inc., Clearing House Risk Management announced lower initial bond and maintenance (margin) requirements for 100-ounce gold futures contracts (GC). Initial bond requirements decline 10% for Spec traders from $10,125 to $9,113 per 100-ounce contract. Initial bond rates for Hedge traders drop 10% from $7,500 to $6,750 per contract. Maintenance (margin) requirements for both Spec and Hedger members dip 10% from $7,500 to $6,750 per contract. Similar margin reductions were

Precipitate Completes its Prospectus Offering and Lists on the TSX Venture Stock Exchange

Vancouver, British Columbia.Precipitate Gold Corp.(the Company) is pleased to announce that it has completed its initial public offering (IPO) of 5,500,000 Shares at a price of $0.40 per share for aggregate gross proceeds of $2,200,000. The TSX Venture Exchange (the TSXV) has accepted the Companys listing application, and the Companys common shares will commence trading on the TSXV at the opening on Tuesday, May 29, 2012 (the Listing Date) under the trading symbol PRG.

Government Scientist Believed Impacts from Arizona Uranium Mining "Grossly Overestimated" in Obama Administration Document

Answers sought on whether politics, rather than science, drove Obama Admin’s decision to block U.S. energy production WASHINGTON, D.C., May 23, 2012 - Internal emails obtained by the House Natural Resources Committee raise significant questions into the science used by the Obama Administration to justify a 20-year ban on uranium development on one million acres of federal land in Arizona. In the emails, scientists within the National Park Service discuss how the potential environmental impacts were “grossly

Northern Tiger Resources Announces 3,000 Metre Drill Program at 3Ace, Yukon

May 24, 2012: Northern Tiger Resources Inc. (Northern Tiger or the Company) (NTR: TSX-V) is pleased to announce that a field crew has been mobilized to its 3Ace Project in the southeast Yukon where 2011 drilling returned results up to 4.6 g/t gold over 35.0 metres, including 106.2 g/t gold over 1.0 metre (see news release dated October 25, 2011). The 2012 exploration program will include 3,000 metres of diamond drilling, as well as additional surface exploration,

Millrock and Inmet Announce New Partnership, Monsoon Project, Safford Copper District, Arizona

VANCOUVER, BRITISH COLUMBIA, May 24, 2012 (MARKETWIRE via COMTEX) -- Millrock Resources Inc.(TSX:MRO.V) (Ed. or MLRKF in the U.S.)(Millrock or the Company) is pleased to announce that it has entered into an exploration and option agreement with Inmet Mining Corporation (Inmet) concerning Millrocks Rainville exploration permits. The project has been renamed Monsoon. Monsoon consists of a large block of Arizona State Exploration permits situated southeast of the town of Safford and south of the Morenci mine in

Central Banks Still Significant Buyers On Gold Dip

GoldCore writes this morning: The massive reversal higher in the gold mining shares yesterday which saw an outside day reversal to the upside and over 4% gains in the XAU and HUI is another sign that we may be close to a bottom. Central banks internationally continue to diversify their foreign exchange reserves into gold bullion due to concerns about fiat currencies – including the dollar and especially the euro. IMF data shows that central banks were

Turk - Preparing for the “Grexit”

May 23, 2012 – The Grexit, or Greece’s exit from the euro, is becoming more likely, judging by how frequently it is mentioned these days. Unfortunately, preparing for it may be more difficult than many believe. Before addressing that point, I would like to first illustrate the extent of the problem.

Euro Index Breaks Support

Note: Edited at 18:30 CT to add the HUI chart at bottom. SOUTHEAST TEXAS – From the Chart Book. The Euro Index reflects the wages of uncertainty. Now below 126, instead of confidence the chart shows contempt for all things Europe – for good reason. Wealth wants out of the Euro without delay – the only reason for USD strength. Continued…

Corvus Gold Hits 5.4m of 16.2g/t Gold and 1,218 g/t Silver in Yellow Jacket Feeder Zone, North Bullfrog Project, Nevada

Vancouver, B.C. - Corvus Gold Inc. (Corvus or the Company) - (TSX:KOR, OTCQX:CORVF) is pleased to announce the latest results from diamond drilling in the Yellow Jacket Zone at the Company’s 100%, North Bullfrog Project near Beatty, Nevada. Hole NB-12-138, which is outside the current in-pit resource as reported in the Preliminary Economic Assessment (NR 12-07, Feb.28, 2012) is the fifth core hole to be drilled in the Yellow Jacket Zone that encountered high-grade gold mineralization (Table

Ethos Commences Drilling on the Betty Gold Property, Yukon Territory

Vancouver, BC - May 23, 2012, Ethos Gold Corp. (the Company or Ethos) (TSX-V: ECC) is pleased to announce that drilling has commenced on the Betty Gold Property, Yukon Territory. The 2012 exploration program is budgeted at $7.3 million and primarily consists of a planned 16,000 meters of drilling using two drills, and the collection of 10,000 soil samples.

Don Coxe – ‘Gold Super-cycle Has a Long Way to Go’

Donald Coxe, Strategy Advisor for BMO Financial Group, a highly respected veteran financial advisor for all or part of five decades with a focus on commodities, agriculture and precious metals, tells Eric King that the gold super-cycle is not near its end. “You will know the super-cycle is coming to an end when money supply growth turns negative and when interest rates turn strongly positive in real terms,” Mr. Coxe said.

Endeavour Silver Discovers High Grade Silver-Gold Mineralization at the San Sebastian Property in Jalisco, Mexico

Drilling Intersects 1,489 gpt Silver and 0.85 gpt Gold over 5.66 Meters in the Terronera VeinVancouver, Canada -- May 22, 2012-Endeavour Silver Corp. (TSX: EDR, NYSE: EXK, Frankfurt: EJD)announces that exploration drilling at the San Sebastian property in Jalisco State, Mexico has discovered a new high grade silver-gold mineralized zone in the Terronera vein.