Today’s CoT gold report is clearly the most bullish report in recent memory:

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Gold_COT_4.26

The small speculator net long position has completely evaporated and even using the “futures & options combined” net positioning, small speculators are at their lowest net long positioning in over a decade. It is important to remember that commercials have an overwhelming tendency to be net short, whereas, speculators (particularly small specs) have a strong tendency to be positioned long.

This CoT report is quite significant because it clearly illustrates that the fast/dumb money small spec crowd has put on a sizable short bet in gold in recent weeks AFTER the gold price had tumbled over $200. The recent bounce in gold (and other precious metals) is likely partially due to the market turning up the heat on these “late bears”, but there is almost certainly more to come. As I wrote yesterday, gold bulls should be looking for a continued steady march higher – today’s pullback after a $160 rally is part of the process.