If you haven't, view the COT graphs. To 26th Jan

http://futures.tradingcharts.com/metals.html

http://futures.tradingcharts.com/cotcharts/GC

http://futures.tradingcharts.com/cotcharts/SI

As far as I can see, the commercial short position 406, 000 contracts 24th Nov reduced to 370,00 at the end of year. It then went up slightly, but has dropped to 360 short contracts held by the commercials (big banks) 26th Jan.

Reading Ed Steer and listening to Ted Butler, a decent number of commercial shorts have been covered since Tuesday on the latest takedowns in precious metals, perhaps a further 25-40,000 contracts. gold and silver RSIs are nboth down in the 30s.

bank participation reports can be viewed at, however I haven't been following that, but should - that's where they base their daily analysis, but I just read their assessments.

http://www.cftc.gov/dea/bank/deasep09f.htm

Bob Hoye's Friday commentary.

http://www.howestreet.com/index.php?pl=/goldradio/index.php/mediaplayer/1543

Ted Butler, I think, suggests silver and gold short positions have probably been reduced to a level equal to at least last Septemebr, although listen and check out the details at kingworldnews.

http://kingworldnews.com/kingworldnews/Broadcast_Gold+/Entries/2010/1/30_Ted_Butler_on_the_Metals_Market.html

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I found it interesting the commercial gold longs as per last Tuesday had risen a little, which they didn't do during the summer lull. And perhaps commercial shorts may be reducing to summer lull levels.

Also, the gold/hui ratio is very high, with RSI 81, suggesting to me gold shares are well oversold compared with gold, whilst gold/crb ratio or the real price of gold, has just risen above 4. Technically, it looks as if goldmining at $1090 benefits from a persistent high real price of gold since Autumn 2008.