Gold COT

Precious metals are closing the week out with a good rally. The Federal Reserve nonsense proved to be a catalyst as it can be in either direction. Regardless of the Fed, the precious metals sector was oversold and due for a bounce. We wrote about that last week. Maybe this could be the bear market … Continue reading

Gold’s reversal from $1130 to $1200 combined with sharp rebounds in the gold miners has given precious metals bulls some hope that the bottom may be in. A few weeks ago we noted that the sector was extremely oversold and a snapback rally could begin. Gold has been the tell for the bear market and … Continue reading

Analysis of the recent COT report…

Here is an updated look at COTs for Gold & Silver…

Gross Silver shorts are at an all-time high….

Updated charts for Gold & Silver COTs including a positioning breakdown for each….

The most recent COT data had one important development. Open interest plunged to a 5-year low. It has been declining steadily for the past three years. Gold probably won’t rebound in earnest until its open interest breaks its downtrend. The decline in open interest signals less interest in Gold. This was one of several COT-related … Continue reading

Positioning currently stands at 76,600 net long contracts on Gold and 18,200 net long contracts on Silver…

Gold and Silver Speculators Have Left the Building by Jordan Roy-Byrne We use a combination of sentiment analysis and technical analysis in market timing which often gets a bad name courtesy of mainstream retail nonsense. The dumb money tries to time the market while the smart money utilizes market timing to weigh risk and reward. … Continue reading

Connected interests (commercial traders) have not only covered their short position but also increased their long positions dramatically since early August. Commercial traders’ longs positions as a percentage of open interest has increases from 29.8% to 35.2% over the past six weeks. This trend and reading, second highest of 2011, set a bullish tone … Continue reading

This material is an excerpt from a premium update Last week we wrote about Silver so this week we decided to provide an update on Gold. In looking at the price action and sentiment indicators we find that Gold is once again ripe for what is becoming an annual seasonal breakout. Gold has broken to … Continue reading

Over the past few weeks Gold has traded at or near record highs. It has yet to embark on a sustained breakout but that is not because Gold is a crowded trade. In recent months money has moved into equities, Oil and Silver. As a result, some hot money and speculative money has moved out … Continue reading