CHARTS VIA QUANDL
Good news for the gold bulls is the spec longs have been reduced substantially and are almost back to late May levels. It was just after the May 24 COT report where longs bottomed, when gold made a big move up on June 3rd thanks to a poor jobs number. If spec longs can get beneath that level, I would feel much better about being more aggressive buying gold or mining shares. The most substantial headwind for gold in the shorter term looks to be the dollar which is on quite a tear and moved much higher today than I expected. It still looks to me like gold needs a bit more of a decline before substantial buying comes in. I will keep watching the price charts as well as the COT reports each week for clues. Open interest, commercial shorts, and spec longs are all close to revisiting late May's numbers and they may even get there next week. Looking forward to an exciting week ahead with all of the technical damage done to equities and bonds this week. Have a good weekend.