Gold Price Stuck at $4,400 as Speculative Short Positions Recover

The gold market has been missing one of its two sides since early June. Speculative short positions in COMEX gold collapsed by 35% in the week ending June 2 and have stayed thin for ten weeks.

This changed on August 11, when buyers added 23,923 long contracts to the gap, altering what a dip would mean. The price of gold rose only 0.64% on Monday to $4,405 an ounce and still cannot clear $4,500.

Gold's futures market has been missing one side due to a lack of short sellers since June. This week, buyers piled in on top of that gap, making the market fragile to a shakeout.