From NIA: Gold Short Squeeze Could Be Imminent!
Gold currently has 93,321 contracts sold short by money managers, its largest short position of the past 18 months. Back on January 5, 2016 when gold last had a larger managed money short position of 95,414 contracts, gold was trading for $1,078 per oz. Afterwards, gold exploded higher for nine straight weeks, soaring by $184 or 17.1% to $1,262 per oz!
Gold currently has a net long position of only 37,776 contracts. For gold to be trading for $1,218 per oz with such a small net long position is extremely bullish. At the very beginning of 2017, gold had a slightly larger net long position of 38,923 contracts, but gold was trading for only $1,137 per oz!
By the end of February 2017, gold's net long position had grown back to 121,720 contracts, causing gold to explode by $116 or 10.2% to $1,253 per oz. Gold's net long position is much more likely to increase from its current level of 37,776 contracts than decline. An increase back up to 120,000+ contracts will likely cause gold to surpass its key breakout point of $1,295 per oz and explode to $1,400 per oz in the short-term!
It is easy to figure out what you believe. The difficulty lies in determining - is what you believe the truth.
