What Pro Traders Think of Gold: COT Report of Sept. 22

For the week ending 9/22, here are professional traders' positions on gold, as per the Commitments of Traders Report for the week ending Sept. 22nd.

Gold Futures Positions: Large Speculators, Small Speculators, Commercial Traders


Meaning


Overall: Long open gold futures are at a 12 month high-extreme bullish sentiment that typically means gold is overbought and due for correction.



Speculators large and small, who represent market sentiment, are overwhelmingly long- near or at annual high long sentiment for gold



Commercial traders are overwhelmingly short



Small speculators are considered to be the most likely to be wrong and the best ones to trade against.



Large commercial traders, as the ones who must actually supply the commodity in question, are considered the best informed and the worst ones to bet against.



Conclusion: Those long gold should have tight stops in place. Risk appetite abnormally high ,thus same advice holds for those long stocks and higher yielding and commodity currencies like the AUD, NZD, CAD, EUR. Bullish for JPY, USD, CHF





DISCLOSURE AND DISCLAIMER: THE AUTHOR HAS NO POSITIONS IN GOLD. THE OPINIONS EXPRESSED ABOVE DO NOT NECESSARILY REFLECT THOSE OF AVAFX