$XAUUSD - CoT Suggests A Quick Short Before the Long Run *SMT*Inverse relationship with the dollar may also suggest a quick short as the dollar just dropped from the all time-high. The dollar may start to pull back down and if so we should see Gold rise. But not after it shorts from the next bearish order block to the nearest Bullish order block and by looking at the Commitment of Traders for Gold Futures, it appears that the longs outweigh the shorts over all. But short term there are mostly shorts. Here's the daily up close to see how the CoT Compares.
As we know bonds have not been great this year and currency chases the bond yield . If the yield is inverse the bond then It may suggest that all currency become weaker which would make gold more valuable. That's why I believe this may be the last short to capitalize on before it takes off.
I expect the short to happen during the London session just a little after midnight NY Time, I would expect the gold start creeping higher until it around 2-3 a.m. a rush up into that bearish order block and then a slow drop through the rest of the day until the end of the London session, that's when I would expect it hit the bullish order blck and turn around and start moving back up. We'll see what happens I guess.
Good luck and happy trading :)
OANDA:XAUUSD
COMEX:GC1!
