Gold Miners ETF (GDX)

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Gold CoT: Peek Into Future Through Futures, How Hedge Funds Are Positioned
By: Hedgopia | December 9, 2023

• Following futures positions of non-commercials are as of December 5, 2023.

Gold: Currently net long 203.5k, up 3.5k.



Gold bugs are probably not happy how the week evolved. The much-anticipated breakout at $2,080s did come about, but this was quickly followed by a nasty reversal.

The metal jumped 4.3 percent last week to $2,090 – a level of immense import. In August 2020, gold posted a new all-time high of $2,089 and retreated. The same thing happened in March last year when it printed $2,079 and in May this year when $2,085 was tagged.

Come Monday, gold began where it left off, rallying as high as $2,152 intraday, but only to then reverse to close at $2,042. That is a swing of $110 in a session! When it was all said and done, it finished the week at $2,015.

The reversal has potential to be a major one. For now, there was some buying interest Friday at lateral support of $2,010s, a breach – likely – of which will open the door to a test of the 50- and 200-day at $1,968 and $1,961 respectively.

In the meantime, non-commercials remain committed for now, with net longs highest since April last year. If gold fails to regain momentum soon, these traders can decide to move on.

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