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Bpultraon Jun 22, 2012 1:02pm
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Post# 20044650
RE: prospects for QE3
RE: prospects for QE3 Market Nuggets: New Shorts Enter Gold Futures - RBC
Friday June 22, 2012 11:59 AM
Open interest levels for gold futures traded on the Comex division of the New York Mercantile Exchange saw a drop of only 34 contracts overall after Thursday's price sell off, but on the week gold has lost about 5,000 contracts, says George Gero, vice president with RBC Capital Markets Global Futures and precious metals strategist. That suggests new short positions entered the market. Short positions are expectations that prices will fall. So far gold prices are holding roughly near unchanged, at $1,564.70 an ounce, as of 11:50 a.m. EDT. If gold can stay between $1,550 and $1,600, that could cause those traders who established these new short positions to exit them by short covering, which is buying back of previously sold contracts. That would mean a rally, Gero says