Gold Standard Ventures Corp. V.GSV

RE:RE:RE: 2pm Fed minutes today....

[PAGODA5]

Wednesday October 12, 2016 09:36

Sean Lusk, director of commercial hedging with Walsh Trading, describes much of the selling pressure in the gold market over the last couple of weeks as long liquidation in Comex futures, but nevertheless suggests any continuation of this likely will be “temporary.” Two weeks, back, he suggested some liquidation (selling to exit long, or bullish, positions) in order to capture profits while traders had them, particularly with some Federal Reserve officials seemingly more hawkish and the U.S. dollar stronger. Data from the Commodity Futures Trading Commission confirms liquidation, he suggests, since the net long positioning of large non-commercials (funds) and non-reportables (smaller, retail traders) has declined to some 289,000 contracts from more than 350,000 a few weeks back. “This tells me that liquidation is the theme instead of fresh selling entering into the market,” Lusk says. “Should continued liquidation emerge, I believe it will temporary given banking contagion and currency devaluations in Europe that will have ripple effects throughout the global economy. The hyper-sensitivity to each headline in the market has created choppy trading in many markets despite the liquidation in the metals.”