If you look at the recent rise in the price of gold and the corresponding rise in open interest, it is notable that most of that rise in open interest is comprised of speculators, with the commercials sharply reducing their long positions. This is not what bull markets are made of, it is only a matter of time before this market heads down. These momentum moves are tough to time in terms of fading them because they are completely emotion driven by non-professionals. However, when the large players are fading a move, the music will stop eventually, and probably very sharply.

For those having long term positions, or those looking to establish them, I would not be a buyer here, you will get a decline to do so.