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Contributed Commentaries

Three exciting charts reflecting the present outlook on gold prices

Peter Degraaf

Kitco Commentaries | Opinions, Ideas and Markets Talk

Featuring views and opinions written by market professionals, not staff journalists.

Commentaries & Views

The first chart (courtesy stockcharts.com) tracks a 15 week gold cycle that bottoms at the green arrows.  The brown arrows point to tops in the cycle.  This week marks the start of week #6. 

The second chart courtesy COT@softwarenorth.com shows commercial gold traders are 'net short' 179,000 contracts.  This is the lowest number since June 2019.  As a percentage of open interest the number is 36%.   This is also the lowest since June 2019.  This is very bullish, as we'll see by looking at the next chart.

This third chart (courtesy stockcharts.com) takes us back to June 2019.  The blue arrows point to the time when the COT reports were as bullish as they  are today.   Will history repeat?  We're about to  find out.

By Peter Degraaf

Contributing to kitco.com

Contact itiswell@cogeco.net
Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.