Once I looked at the commercial hedger’s positions, there was no doubt in my mind that they are in a bearish mood.
I will add the gold COT report later. They were also just as bearish in silver so I can’t see gold or silver soaring to new record highs just yet. Most of these metals or futures contracts have no daily limit and gold/silver are two more. It is also one of the main reasons why these no limit contracts can free fall.
The death cross on the weekly charts is below us at the $1250 price level, and the $1160 price level will confirm this wild gold move mostly as a bear market rally.
Commercial hedgers removed 25,503 long positions and also added 10,272 to their short side. Combine them together and that is a substantial bearish move. Chasing a bullish wave count under these conditions is futile at best.