Examining the #CFTC data we can see something very interesting brewing. What is it? Well lets' have a look together.
Back in August 2022 the banks tsarted accumulating a massive short position on #gold and here's what that looked like.
Now that is certainly interesting right? But when you look at what took place on the chart you can see this.
Price declined when positions started becoming aggressive on the short side from the 85k to the 111k and upwards.
So what is the current situation on #gold now? The banks have been offloading their longs positions and dropping them to numbers similar to what existed before the major drop in price last year. Not only that, but their short positions just entered the same aggressive mid 80's that existed before the drop as well.
Where are we now on the charts, relating to this latest set of data? We are situated nice and high on the charts, after the banks lured retail into longs a while back in December.
Could this all be setting up a major drop in #GOLD? I think the evidence suggests this may happen and I think it is a very compelling argument. We do know that we have seen plenty of evidence to suggest the $EURUSD is going to drop and we know the two are highly correlated. I will leave the rest up to you.
LEAVE YOUR THOUGHTS AND COMMENTS DOWN BELOW AND LET'S DISCUSS
