Gold COT (Commitments of Futures Traders) Weekly Chart

Keystone has posted this gold COT chart a couple times over the last month or so. Red circles identify gold tops and green circles identify gold bottoms. The COT lags by a week or more so the bars can easily be printing inside the green circles identifying a bottom in gold just like in December 2013 and June of this year. When marrying the COT chart above to the gold weekly candlestick chart a jog move may develop over the next month. The weekly candlestick chart not shown displays weak and bleak indicators so as gold catches a bid and bounces in the near-term, the weekly candlestick chart likely wants to see lower numbers again. Also considering that gold price is teasing the 1200 psychological level, the expectation would be that 1200 fails, therefore the 1160-1190 area may be a better zone to bounce from.

So combining the regular weekly stock chart and the COT above, the expectation is for gold to bounce in the near term (a few days or week or so) but price will probably come back down again perhaps allowing the COT to print bars more in tune with the late 2013 lows where the sturdier bottom will be placed. So if you are a nimble trader you can make some money in the VST on the long side with gold but the more attractive entry area if you are a longer-term trader and lower risk trader is probably sub 1200, say at 1160-1190, which should occur in the next week or three. With the COT bars in the green circles, gold would be expected to place a bottom anytime over the next month. 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 COT chart is annotated by Keystone. COT charts are offered by the following excellent resource;

COT Price Charts