"Our long-term plan is to build Hong Kong into a commodities, currencies and risk management centre, and gold ticks all three of those boxes." -Chuck Li, Hong Kong Stock Exchange Chairman, July 10, 2017.
sentiment readings are at levels seen at bottoms . w/the dsi down to 10. the commercials have more longs now then they did at the bottom of dec 15. for the bottoming process to be complete in my opinion we need to create momentum divergences. the market has shown that the miners lead, up and down. well as of now gold has made new lows. and the miners have yet to take out their last lows. this is a divergence. however at big bottoms most of the time there are momentum divergences. and that is what i am waiting for.
when we hit near 1300 the last time. india import banks left the market, and have been out for this 100dollar decline. this is significant one of the worlds significant players in the physical market is out of the market. the banks are scheduled to reenter the fray this week. diwali buying begins in august. thus the seasonal lows for gold . the commercials as of last tuesday have significantly cut their short exposure. and by the way the commercial positions on platinum look very bullish.
i am waiting on momentum divergences to occur. w/sentiment and commercials shifting their positions. as of last tuesday, we are getting good bottoming action, not indicative of further price erosion, however, a blast below 1200 would not surprise me. and serve to get the large specs short.