Look what the big traders are doing with gold.

The latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday showed that large speculators and hedge funds increased their bets on gold by almost 1,000,000 ounces. Usually this is one of the first signs of a reversal in the markets. We have seen the prices of gold and silver hit multi year lows in the recent month and fully expect some major short covering in the market thus driving the prices higher.