Since 2006 when the CFTC began releasing its weekly COT data, gold achieves its strongest forward 1, 3, 6, and 12-month returns, when the managed money futures+options net long position is negative!
For the week ending Tuesday, October 3rd, it finished in negative territory at -3,004 contracts vs. the long-term median of 99,050 contracts.
There is a massive managed money short position in gold futures+options contracts of 106,169 contracts, which is one of the largest in history at more than triple the long-term median of 32,548 contracts, and it must soon be covered!
The managed money short position in gold futures+options contracts was only 24,216 contracts on May 4, 2023, when gold hit a "triple top" at around the $2,080 per oz all-time nominal high area. Since then, the short position has more than quadrupled, but as it is forced to cover in the upcoming weeks/months it will send gold to new all-time highs!