“Today’s COT report for gold (as of Tuesday) is extremely bullish. Managed Money (mostly hedge funds) net long futures contracts plunged 30% on the week to a net 43,360 contracts, the lowest level of the year and below late January’s level, just before gold soared $260/oz to a near-record high. Managed Money almost always has its lowest net long futures contracts at gold bottoms and largest net long positions at tops. The 43.4K net long contracts this week is just slightly higher than the lows seen around early August and late-September of last year when gold was trading sub-$1750.”
USAGOLD note: In the chart below, you can see managed money position bottoms signaling gold price uptrends, as Hickey indicates.
Gold future and options fund net positions vs price
Chart courtesy of MacroMicro.com