Gold Breaks Record on COMEX Before Brexit

Saturday morning saw us wake to a new COT (Commitment of Traders) report from COMEX.  Whilst we reported recently that Managed Money (speculative investment funds etc) ‘long’ silver futures had hit a record high, on Saturday we learned last week saw a new record high in gold in the lead up to the Brexit vote (see the graph below).  Not only was it a record high ‘long’ position by Managed Money it was also the biggest weekly jump in history.  An important observation too is that the ‘short’ positions (betting on a drop) only dropped marginally which means the majority of these new ‘long’ position contracts (buying on the basis you think it will go up) were not because of any ‘short’ covering rally, it was new money coming in expecting a price rise.