Is gold vulnerable to another shakeout?
The COT figures show that last Tuesday hedge funds were net long 180,375 contracts. The question is how solid are these holders, and what are the seasonal factors?
The chart below shows how Comex’s Managed Money category drives the gold price, and has been doing so, particularly since 2021:
This is normal market behaviour. But in all bull markets, there are times when the hedge funds are a little too enthusiastic. Could this be one of them?
My next chart indicates the Managed Money’s current group sentiment:
