Hedge Funds are heavily short gold. The managed money gold short position is currently up to 86,438 contracts for the largest gold short position since the end of September 2021 when the managed money gold short position reached 88,062 contracts.
When the managed money gold short position reached 88,062 contracts at the end of September 2021, it was a bottom for gold of $1,721.10 per oz. Over the following six weeks as the shorts got squeezed and the managed money gold short position declined back down to only 43,083 contracts, gold rallied by $158.40 per oz to a November 16, 2021, price of $1,879.50 per oz. Gold continued trending higher to a March 2022 high of $2,078.80 per oz!
On Friday, gold hit a low of $1,726 per oz, which was its lowest price since the end of September 2021 when gold bottomed at $1,721.10 per oz.
If we once again see a gold short squeeze over the next few weeks, shares of Augusta Gold (TSX: G) will immediately explode to new 52-week highs of above $2.40 per share.
Keep in mind, at the end of September 2021, the U.S. Dollar Index was only 94.24. Today, the U.S. Dollar Index is up to 106.895.
For gold priced in U.S. dollars to be up slightly from its September 2021 low despite the U.S. Dollar Index making one of its largest rallies in history, it is the #1 most bullish possible indicator for gold!
Throughout history, anytime the U.S. Dollar Index has made a huge increase like we have seen since the end of September 2021, yet gold priced in U.S. dollars makes a small increase at the same time, it has ALWAYS meant that gold is about to make one of its LARGEST upward moves in history as soon as the U.S. Dollar Index reverses downward!
This is why NIA is 100% confident about Augusta Gold (TSX: G) rising by 500%-1,000% over the next 12 months! Our last gold stock suggestion gained by 875%!
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA's President has purchased 174,200 shares of G in the open market and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.