Judging By The COTs And Open Interest, Gold Is In A Short Squeeze

And the dollar index is testing a 15-year uptrend line. Good luck with that, reserve currency.

It's obvious now that gold is in a short squeeze, and there is plenty of room left for it to continue. That doesn't mean it necessarily will, but the bullion banks still have plenty of short positions that are underwater that they can cover either through buying them back or physical delivery. You can see it visually below.

The green line at the bottom, swap short positions (bullion banks) rose from -264K to -180K, representing the liquidiation of 84K short positions since February 3^rd, or 32%, with a concurrent rise in the gold price of $600, or 21%. Open interest since the same date, February 3^rd, is down from about 543K to now 463K, about 80K contracts, very close to the same number of short contracts liquidated by the swaps, either through delivery or buying back with dollars, probably a combination.

For sure the financial media including my corner of it and all the gold and silver commentators etc. will all be trying to sound smart about why exactly this is happening specifically now. Of course there is a reason why, or a group of reasons why, but the truth is it simply does not matter. Now the media buzz is about Trump wanting to fire Powell, and ZeroHedge has a headline about why this specific development is what's pushing gold through $3,400 specifically now, "uncertainty" or whatever, but fundamentally it doesn't make a damn bit of difference who leads the Fed, or if anyone leads it at all, or if it's run by ChatGPT or Grok or whatever that Chinese AI was that everyone was going nuts about 3 weeks ago, or even if the Fed is run by a walrus honking colorful horns representing interest rate cuts or hikes for buckets of raw fish guts. None of it matters, and it's all a bunch of crap.

Gold is going up because