COT Gold Charts, page-50

Interesting COT data out of the weekend, there's finally been movement!

Speculative money added to long positions by a cumulative 40k contracts (decrease short exposure and added to longs), while commercials did the opposite by 40.3k.

As seen the first half of last year, the trend saw speculative net long positions increase with commercials matching them with net shorts in a rising gold trend.

Is a similar trend about to play out this first half? One week spike in data won't be enough to say that the specs will drive prices higher by adding fresh longs. The specs have a habit of driving up price until they overexpose themselves, that's where the commercials win on the way back down through long deleveraging and selling off their shorts that come back into the money. Plenty of room in the data until that happens...the specs are currently sitting on only have the long position of last year's peak.



The balance didn't really move - net short 16,100 contracts verse last week, short 15,800.



AUD Gold looking good here. Margins and earnings for Aussie gold stocks are robust and healthy, it's really gust sentiment and fund flows - usual suspects, GDX/GDXJ doing the damage.





Nothing of note to make me worried about NST or other Aussie domestic gold producers!