Gold Miners ETF (GDX)

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Gold CoT: Peek Into Future Through Futures, How Hedge Funds Are Positioned
By: Hedgopia | July 20, 2024

• Following futures positions of non-commercials are as of July 16, 2024.

Gold: Currently net long 285k, up 30.2k.



As expected, gold bugs staged a breakout this week but were unable to hang on to it. On Tuesday, gold broke out to a new intraday high of $2,475. The momentum continued Wednesday with another intraday high of $2,488 but only to then reverse lower. By Friday, the metal had given back 0.9 percent for the week to $2,399/ounce.

Prior to the breakout, gold essentially went sideways for three months. On April 12th, it hit a new intraday high of $2,449 before selling off a tad. This was eclipsed on May 20th, as the yellow metal ticked $2,454 before once again coming under pressure. All along, bids showed up at $2,300, a breach of which will have shifted momentum to the bears.

Even now, this week’s action probably does not boost bulls’ confidence. A test of the 50-day at $2,369 probably lies ahead; if this is lost, $2,300 is a must-save for the bulls.

Non-commercials have been aggressively accumulating net longs in gold futures, and it does not take long for them to begin unwinding those.

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