XAU Price Correlation with COT Reports

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Here's a chart that shows the days when Swap/Prod shorts hit their peaks on the GOLD-COT Report.

Purple lines plotted against XAU show that prices dropped every time Swap/Prod started reducing their short positions.

Producer shorts last week were sitting at 192,484, which was the highest since Jan-2013. This week Producer Shorts dropped to183,073.

Will history repeat itself?

tradingster.com/cot/futures/disagg/088691

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