Silver COT selling interest at extreme while Gold buying interest decreased sharply.
COT raw data for Silver show an increased of short positions for Processor and decreased for long positions while COT raw data for Gold show no of short positions for Processor and Swap Dealer increased much more than long positions
Precious metal is a safe heaven for traders and investors. Silver is in selling extreme region, will Gold follow? From the above chart, there is a high probability. Traders may be in the process of moving their fund out from precious metal as safe heaven and re-position to stock markets? Since COT for US markets and Nikkei are at or near to buying extreme
From the above weekly chart, Gold and silver had broke out from the DT channel. To ride the wave down, need to wait more concrete signal to increase the probability of profitable trade. If break down and closed below the week low (last 2nd bar from the right, green arrow) will be a one of the confirmation signal to short.