XAUUSD - Watch the Weekly Charts

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COT Reports is looking good for a turnaround to begin around Mid-August. The Commitment of Traders (COT) reports show futures traders’ positions at the close of (usually) Tuesday’s trading session. The report is prepared by the Commodity Futures Trading Commission (CFTC). It is an excellent trading tool and can be used as an indicator for analyzing market sentiment. Markets are only included if 20 or more traders hold positions equal to or above the reporting levels established by the CFTC and the respective exchanges.

Stochastic pattern is bottoming out and pointing to a major uptrend in the new term. The Stochastic Oscillator is a range bound momentum oscillator. The Stochastic indicator is designed to display the location of the close compared to the high/low range over a user defined number of periods. Typically, the Stochastic Oscillator is used for three things: Identifying overbought and oversold levels, spotting divergences and identifying bull and bear set ups or signals.

Keep an eye on trade war developments to impact USDCNY.....
Nota
COT Reports for this week are showing Commercials increased their longs positions from 154203 to 164195 and short contracts decreased from 179812 to 171545.

The commercials are now short by roughly 7000 contracts. The last time we saw extremes like this was back in December 2016, and Gold rallied from 1045 to 1375 in the following six months.
Nota
Commercials are now net-long the gold market for the first time in 17 years! For the second week in a row the bullion banks and commercial hedgers are long the silver market (for the first time in history).

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