Gold Trading COT Report “Means Lower – Then Much Higher – Prices Coming”

Monday, October 10, 2016
By Paul Martin

By: GoldCore
GoldSeek.com
Monday, 10 October 2016

The gold trading Commitment of Traders (COT) report, released Friday, shows the peculiarly timed gold sell off and much needed wash out of speculative longs out of the gold futures market last week sets gold up for lower prices, prior to moving higher again.

The timing of the sudden sell off, when Chinese gold markets and the Shanghai Gold Exchange (SGE) were closed for the five days of the Chinese Golden Week, has rightly raised a lot of eyebrows. China is now a powerful force in the gold market, and is influencing global gold prices through the physical gold exchange, the Shanghai Gold Exchange and indeed the Shanghai Futures Exchange. China also has four gold-backed ETFs that are growing in popularity.

Concerns that the sell off was manipulative in nature are again widespread. The sell off was once again another purely paper or electronic futures market sell off with little or no liquidations of actual gold bullion and no important gold data or news or wider market data. Indeed the sell off came at a time of very robust physical demand – especially in mainland Europe – due to concerns about Deutsche and other German banks, Italian banks and other European banks.

There is also very robust demand in the UK on concerns about the outlook for sterling which has seen sterling gold surge in recent months. Gold brokers in the UK, including GoldCore, saw significant demand after the sell off last week and the sterling flash crash led to a further spike in demand.

The Rest…HERE

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