Free Trading Resources<\/strong><\/p>\n Have you checked out Jeff’s free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career \u2013 at zero cost to you. Just click here<\/a> to check it out.<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n The smart money wasn’t too concerned about a further decline in the price of gold. They weren’t looking to hedge their bets. They wanted to profit on an upside move.<\/p>\n When gold is trading at a relatively high level and commercial traders expect the price to decrease, the COT net short interest often rises to more than 300,000 contracts.<\/p>\n Last Friday’s COT report showed that commercial traders were net short 352,000 contracts. That’s the largest net-short position of the past year.<\/p>\n The last time the smart money was this cautious was last June. Back then, gold was trading for $1,900 per ounce. It dropped $150 over the next four weeks.<\/p>\n Historically, when the commercial traders’ net-short position gets this high, the price of gold tends to suffer in the short term.<\/p>\n That doesn’t mean investors should sell all their gold, or that traders should build up short positions. The long-term outlook for gold remains bullish.<\/p>\n But, folks should be careful chasing the price of gold higher in the current environment.<\/p>\n We’ll likely have a chance to buy it a bit cheaper several weeks from now.<\/p>\n Best regards and good trading,<\/p>\n Jeff Clark<\/p>\n <\/p>\n What do you think about gold being used as a hedge against inflation?<\/p>\n![\"signature\"](\"https:\/\/files.jeffclarktrader.com\/global\/signatures\/jeff-clark-signature.png\")
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