The SPDR Gold Trust ETF (NYSEARCA:GLD) has lost over 40% in value since it hit an all time high back in 2011 & it has left many investors wondering how much more it could decline before the bearish trend down finally reverses. I believe that we may have finally seen the bottom or we are about to based on commercial traders positions in the US dollar and gold. I closely follow the positions of commercial traders because I believe they are the most influential group when it comes to commodities. I reviewed one COT report every month since back in 2006 & out of every report I looked at commercial traders have never had a larger long position. In the next coming COT reports if commercial long positions exceeds their short positions we may see a very large gold rally.
Gold COT Report - Futures & Options Combined