COT Gold Charts 2.0, page-39

Sorry, been a bit busy!

I'm going to keep this fairly short. Gold stocks aren't really taking off like they should for where the price is, one reason I've come up with is the complete lack of interest in this current rally from retail investors and other large institutional players (non commercial). This is really evident in the static movement in the GDX, it really should be taking off like other previous rallies to US$1,300. To this point, we can see from COT data that the large speculators are not present on the long side and have only just unwound their massive short position. If this group isn't interested and are also involved in gold miners, then who will take up the reigns?

The positive from all of this - a stealth rally in gold is occurring and it has a lot higher to go (despite volatility from political events). Previous rallies to US$1,300 had build up in large speculator longs, this build up hasn't even started yet - very positive for gold to keep tracking higher, take out the long term down trend from 2011 and push through the resistance at US$1,300. Should this occur, than I expect retail investors and other large institutional players to rush in and push the price of gold and the miners up in explosive fashion.

Is the six year bear market in gold over? We will find out very soon...

Only one essential chart today!




The start of a new gold bull market? the COT data is saying YES!