I know I wrote about gold
a mere three weeks ago, and the reason I wrote about it was the low reading on the Commitment of Traders report.
Large speculators were long just under 90,000 contracts at that time and that got my attention because it was the first time in 4 ½ years that the net long position had dropped below 100,000 contracts.
Over the last few weeks the number of contracts being held long has continued to fall. The report from last Friday shows that large speculators are net long 56,789 contracts, the least number of contracts held long since October 2006.
Even as the sentiment has continued to fall, the price has started to rally a little and has logged gains in each of the last two weeks. And gold got off to a good start for this week with a $22 jump.
I have personally added a gold exchange-traded fund to my IRA holdings and I will probably add to it once I see the large speculators reverse their selling trend.
I would also like to see the price get back above the $1,500 level before I add to the position. If these two things happen, I think we could see a run at $1,800.
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