The three week total of SGE withdrawal activity is now 179.4 tonnes, which completely refutes the lies and disinformation that the stock market bust there has caused gold selling. The forensics point to quite the opposite, demand is increasing.

Ex-duty premiums in India were as high as $13.59 last Friday. A number in the teens indicates aggressive buying.

Meanwhile back in the Crimex paper market we see even more shorting from the unusual suspects. Managed money slingers are up to 120,917 contracts short,  yet another record. Small specs were even more active this week adding  2,504 net shorts. That small spec skew explains why the “market” has seemed more heavy feeling than attacked last week. Swap dealers increased their net long exposure by about 3,000, and are now carrying an unprecedented net long position of about 24,000.

pen interest dropped by 21,478. None of this was spec short covering. Most were producers, processors and merchants reducing positions and hedges.  In fact the involvement of this group is becoming more and more diminished. Are the more prudent recognizing what a crime scene this exchange is?  The overall percentage of contracts held by speculators is at a record.

Further illustrating what a farce the Crimex really is, registered physical gold in the warehouses dropped another 25,386 ounces Friday and now sits at 351,519 ounces. Paper open interest in relation to registered physical gold at the Crimex is now 124.3 to 1, simply off the charts.

CoT: click to enlarge: