5 Charts That Show Why I’m Starting To Like Gold

It’s been a crazy couple of weeks for Gold prices (and investors).

As most are aware by now, the yellow metal has been out of favor for some time. And more recently, Gold’s slide has turned into a mini-panic. But after diving down into the 1070’s on Friday morning, Gold staged a rally back towards 1100 by the end of the day

The recent action has several of my indicators at or nearing buy signals. Here are a few of them with charts as illustration. Note as well that there is a link to a video study on extreme hurst signals in #4 below.

1.  Managed Money in COT report just reported first time ever net short position in gold futures!!  When there’s no one left to sell…

Sign up for our FREE newsletter
and receive our best trading ideas and research

As well, Swaps have gone net long – a contrarian trade similar to the managed money COT reading. They are selling what people are buying, bets on gold going down)

gold cot chart swap dealers july 24 2015


2.  Small specs are at very very low readings net short positions. Considered DUMB money, it has shown in the past it pays to fade this group.

gold small specs net short chart july 24


3.  The COT Index and WILCO index are at extreme readings – both are formulas that normalize COMMERCIALs behavior relative to themselves over past 1.5 and 3 years.

gold cot report willco index chart july 24


4.  We have very high ranking extreme hurst signals on daily scale in gold. This signals markets nearing the end of trends, not necessarily reversal points. Watch a video on this here.

gold chart hurst signal


5.  Gold’s 10 year seasonality chart is about to turn higher (out of its seasonal swoon).

gold seasonality chart

Thanks for reading.


Twitter:  @interestratearb

The author is short Gold put spreads and long Gold futures at the time of publication.  Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.