While some of the daily moves in gold may have been caused by tensions with Syria and a possible U.S. military strike, what else moved gold up to break above $1,400 and test $1,420, a previous area of resistance?
According to the CFTC, the managed money short positions dropped 13% while the long positions rose about 8% during the week ending Aug. 20. The net position at 73,216 contracts is the highest since Feb. 5.
Gold futures prices consolidated mid-week, after testing resistance on Monday and Tuesday. Fears associated with tensions in Syria have pushed the yellow metal back above the $1,400 level for the first time in nearly three-months.
Last week September 2013 silver opened at $20.680 per ounce and closed the week at $23.322. Bulls got some positive economic news out of China and the Eurozone helped push speculation on increasing silver demand.
The gold futures reached $1,343.60 on Aug. 12, the highest level in about three weeks. The speculators net combined shorts positions in gold declined by a staggering 23,518 contracts in the week ending Aug. 6.