Does the present over-sold gold market present exceptional upside profit opportunity?
*CNBC, by Alex Rosenberg, December 9, 2013
As funds get massively short, gold could spike
”Hedge funds and money managers are now less bullish on gold than they’ve been since June 2007, data from the Commodity Futures Trading Commission show. And that could actually be good news for the beaten-down metal.
‘This could set us up for a bit of a run to the upside if we have the catalyst,’ said Rich Ilczysyzn of iiTrader. ‘But if we don’t get it, then gold could go dormant for a while.’
In the week ended Dec. 3, short bets on gold increased by 4,557 to 79,631 lots, and longs slipped slightly to 106,405. That means the net long position in gold fell 16 percent to 26,774 futures and options, which is the smallest net-long position since June 2007.
The interesting corollary to this fact is that from June 2007 to March 2008, gold prices rose by 50 percent.”
Link to full article here: http://www.cnbc.com/id/101257688
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