Clive Maund - Gold Market Update (01/23/11)

``the big news at this time is the latest COT figures which show that the Commercials have scaled back their short positions in gold dramatically - and remember that the latest data is only up to date as of last Tuesday and thus does not factor in Thursday's sharp drop, which will have resulted in even lower readings. The COT chart, posted below the 8-month gold chart to enable you to compare readings at gold's peaks and troughs, is startling and a very strong positive indication for bulls as it shows that the Large Specs (dumb) have scaled back their long positions to levels even lower than they were last July, while the Commercials (smart) have scaled back their short positions to levels even lower than they were last July. This - just by itself - is viewed as sufficient evidence that we are close to another big upleg developing in gold. ''