Over the last 6-months, the price of Spot Gold has been capped just below the $1370.00 level three times.
With the current price around $1350, the question now is: will Gold be capped again, or will it break over $1370 and head higher?
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Looking at Friday’s Commitment of Traders report offers an interesting perspective. The numbers show that the speculators are long and the commercial accounts are very short.
As a rule, since the commercial accounts actually hold the Gold, they are more likely to cover their short exposure quickly.
As such, we see a growing likelihood that Spot Gold will trade back over $1370 for the first time since July 2016, over the medium-term.
This extension of the recent rally will lift local mining names such as NCM, SBM, EVN and SAR.
Newcrest Mining
Santa Barbara
Evolution Mining
