Monday, May 23, 2016

Gold Market top ? High levels of Net Short Gold positions in COT reports

I love the notion of being long of Gold in Non-US terms particularly in Yen and Euro terms. 

There is, however, one major factor in the market that gives us very real reason to be concerned: the net commercial short position in gold futures is amongst the highest levels seen since the turn of the century and characteristically these have developed at important gold market tops.

The top in 2008 was made when the commercials were almost as short as they are now; the top in ’09 was made the same way as was the real top in 2011 when gold peaked at $1,900. Attention must be paid.

via bulliandesk