As posted as an ‘exclusive’ for my friends at TalkMarkets…
The Commitments of Traders (CoT) structures for gold and silver have been in ‘bearish’ configurations for some time now. But it is the trend more than the absolute configuration, that matters most to future near-term price activity.
Big negative reactions to the metals only come when when the CoT has finished traveling in its bearish trend. As long as the trend remains intact for increasing speculative net longs and increasing commercial net shorts, the trend is what it is and it remains bullish. Here are the current trends in gold and silver, still intact with large speculators pressing long (top) and commercial hedgers increasing net shorting (bottom). This will always be the case during a bull trend.
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