Let's be honest a paper raid can come at anytime, however I believe that many of these new shorts added by the commercials may have been covered post Non-Farm Payrolls data, from May 1st (end of reported COT) gold sold down from $1670 to a low of $1626 (intraday) and has since recovered to close at $1642. whether its a takedown in preparation for the bad data, CME margins, about to break short term resistance whatever. The next COT will be interesting, however I am no expert but this is not the only platform for price discovery. The commercials are surely aware of the large sovereign orders that sit beneath this market. Major support has come in twice now in the mid 1500's, both with global stock indexes substantially lower than current levels. If your concerned about gold selling off in the risk off period we may be facing in the coming weeks as global data has been very weak this past fortnight, hedge yourself with a couple of short positions on the S&P500 & DAX perhaps and Long the USD Index. I still see a mother of a rally in gold coming this year.
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