CFTC reports continue to show that net long positions in gold are being liquidated. Nineteen tonnes were shed in the latest reporting period on Comex. Long-silver specs unloaded 210+ tonnes from their logbooks and added 110+ tonnes to short positions.
Gold prices drifted even lower overnight and this morning as year-end sellers once again cashed still-profitable chips in and opted to park proceeds in cash at least until the first week of 2012 draws to a close.
The price washout in precious metals intensified in the wake of the Fed's failure to please the markets with more stimulative action. The disappointment was palpable and, combined with the European debt debacle, resulted in fresh two-month lows for gold.