GOLD COT (Commitments of Traders) Chart with Gold Daily Chart Sideways Channel

The COT Report chart shows the peaks in gold price with red circles and the bottoms in gold price with the green circles. COT data typically lags by a few days or week or two but it is clearly evident how the COT sync's up perfectly with the gold price chart. The last three weeks the COT is stumbling sideways refusing to show its hand. This is reflective of the ongoing sideways blue channel in the gold price chart through the 1180-1215 range for the last six weeks.

When the bars on the COT chart exceed the outer boundary of the red lines that indicates gold price becoming too extended to the upside. If the COT bars are contracting down to the green lines then gold price is placing a bottom. Note how the bars on the COT chart move through the channel created by the green and red line indicating sideways behavior. If the bars move towards the green lines again then that will be in concert with price dropping and setting up a bottom for a recovery rally. If the bars move outward past the red lines then a price top is occurring in gold. Check the next COT chart to see what direction the next bars favor. 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 courtesy of the COT Price Charts site, a very useful reference site and annotated by Keystone.