Here is a gold chart of the cash market without prices on it. Sometimes it is nice to take the clutter out and just look at the price to see what it is saying.
As indicated by the line below on the COT data, you can see commercials are selling this rally. That by itself it is not necessarily bearish and can in fact be bullish. However, what we see here is a selling action right at prior highs. When I couple this with a friend telling me the other day that her 9 and 11 year old daughters asked her if she was buying gold, and why not when she said no, I have to conclude this is a top in price. Also, noted famous traders Glenn Beck and Sean Hannity are hawking it on their radio shows. It makes me wonder who else is left to buy?
Tops are made when the market runs out of buyers not when heavy sellers show up. We also have the seasonal tendency for a top right here. At the very least this is a shorting opportunity for a fall of $100 or more. After that whether the buy on the dip is the right play will not be known until it happens and we see how the commercials act on the dip.