Make Kitco Your Homepage

Shorts Getting Squeezed And Starting To Panic

Commentaries & Views

The short squeeze in metals continues and it appears the shorts are starting to panic. The rally, as good as it looks, is not very healthy and before it ends, gold could see $1,325 and silver could see $17.20. That’s the funny thing about short covering rallies; they look so good right before they collapse.

Helping the rally has been the pressure in the cryptocurrencies, especially the Bitcoin, which has been under pressure. Now, governments around the globe are trying to set regulations on the digital space. South Korea is talking about banning the cryptocurrencies, but I don’t know how. However, that has brought a little fear to the space and brought money back to the metals.

We remain long-term bullish and short-term bearish the metals. As investors, we will hold; as traders, we will try and capitalize on the expected down move. Our expectations are a test of the recent lows as soon as the shorts are squeezed out.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Precious Metal Charts

Follow Kitco News

Cambridge House San Francisco Summit