The Commercials (smart money) switched to the buy side aggressively this week (as of Tuesday) with a 25K plus net increase to the long side when combining both futures and options. That kind of major shift is a rarity, and odds are high that this trend continued through to today's close. The Large specs and non-reportables (not-so-smart, small spec money) did the exact opposite, panically selling as many so-called experts (Gartman, Roubini, etc.) quickly proclaimed the death of the 11-year old Gold Bull. With sentiment pushing extreme levels of bearishness, and the public still not participating in any meaningful way in this sector (particularly noticable with very low exposure to Gold equities) one has to wonder who is left to sell here at this point, other than a few stragglers. Also note the extremes in the USD COT position, with Commercials now aggressively selling the recent panic move into the greenback. Interesting times ahead...buckle up and keep yer wits about you!

The COT Report is linked here: