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.
