As in the past, one group of traders that bear close watching are non-commercials.
That group has been adding to net longs in gold futures – it hit a 14-week high last week (see the chart below). This data is through last Tuesday and before the 4.1-percent spike in Gold last Thursday… so that session may have changed the supply-demand dynamics – we’ll know more when this week’s COT Report is released.
Thus far, gold bugs have the backing of these traders, and will need their support going forward in order to defend $1180 at best and $1140 at worst. Might be wise to also keep an eye on how fast the Gold Volatility index slides.
Read more from Paban on his blog.
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