Expect More 'Shock and Awe' In Gold

The money flows of "smart" and "dumb" money continues to reflect a positive and explosive backdrop for gold. Smart money is increasing their net long position as dumb money reduces them.

Gold London P.M Fixed and the Commercial (C) & Nonreportables (NR) Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest


Not only is smart money covering their shorts into strength (reflective of a market breaking its chains of control) but also they are beginning to increase their long positions during the short-term dips. This subtle accumulation implies a scramble to get long. The chart below illustrates their quiet accumulation since mid July (dark green arrow).

When smart money aggressively covers and quietly accumulates, it tends to precede/coincide with upside price explosions.

Gold London P.M Fixed and the Commercial Traders COT Futures and Options ZScore Weighted Average of Long & Short As A % of Open Interest