Submitted by Morris Hubbartt:
As the chart clearly shows, “smart money” purchases have generally occurred during major price weakness.
We are grinding through a prolonged period of such weakness now, and the commercials have been buying long positions and covering shorts. There are also rumors they are buying physical gold.
The big money in any market is usually made by buying extreme weakness. The latest COT reports may not indicate that the lows are in. They do indicate that commercial traders believe gold offers tremendous value to buyers.