Tom Szabo

Has Gold Fallen in a Secular Bear Trend?

Shorting isn't what caused gold to drop in price, it was long liquidations. The shorts actually covered in gold, as evidenced by a big decline in open interest. You can't have a decline in open interest without short covering--otherwise it is just longs selling to each other and there is no decline in open interest. What's interesting is there has been no drop in open interest in COMEX silver even though it has declined by a much larger amount than gold. You'll have to search around a bit, though not too hard, for my theory why.