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However, I do want to write about gold. Unnoticed by most, the Commitment of Traders have turned dramatically in favor of gold. The Commercials (gold banks, mines, major jewelry manufacturers) usually run the show on a short to medium-term basis. Here is the recent record on gold contracts.

April 12 commercials long 48 thousand contracts, short 239 thousand contracts.

April 20 commercials long 60 thousand contracts, short 182 thousand contracts.

April 27 commercials long 68 thousand contracts, short 169 thousand contracts.

May 4 commercials long 72 thousand contracts, short 161 thousand contracts.

May 11 commercials long 83 thousand contracts, short 153 thousand contracts.

So the commercials have been steadily boosting their longs and decreasing their shorts. In the meantime, the small speculators have been decreasing their longs in gold while boosting their shorts (it's the same story in silver).