Gold COT (Committment of Traders) Chart

The COT reports are great indicators for commodities although the data typically lags by a week or two. The red circles show the tops in gold price and the green circles show the bottoms in gold price. Gold makes two price lows over the last year; first, the price low in late June-early July 2013 and second, in January to begin the new year. Both were attractive buying opportunities.

The projection for higher gold as the year began worked out well with a strong move from 1180 to 1390 occurring at the March top. Gold fell out of bed the last couple days down to the 1260's. Ukraine, schmoocraine. The Ukraine civil war has no effect on gold price, no one appears worried or concerned about geopolitics, and Modi's election in India is also not boosting the yellow metal price. The COT is currently more consistent with a top in gold price, and the drop over the last couple days confirms this. Remember, the COT lags a week or two. Gold is not attractive to buy until the red and blue bars move closer to the zero line as the green circles in the margin show. The 1220-1260 zone is a strong prior consolidation area for gold price and may hold to create the new green circles. This information is for educational and entertainment purposes only.  Do not invest based on anything you read or view here.  Consult your financial advisor before making any investment decision.

The chart is from Free Commitments of Traders Charts web site and annotated by Keystone. Many other COT commodity charts are provided at this useful site;

COT Charts