Here is an updated chart through Monday of Comex Gold. This may not look like much, but Gold is $36/ounce off the high close of 2 days ago.

Keep in mind in the futures this is $100 per contract for $1 per ounce movement. This is the kind of thing that happens when moves get very extended like this.

Click on the chart to enlarge it and you will again be able to see the short position the commercials took just by coincidence right before the market highs.

This does not mean to just run out and short a market due to that. What it does mean though is be very careful blindly buying it. Whether this is a significant top or not cannot be known at this point. The blue trendline is still clearly intact, indicating an uptrend. However, what this does is just substantiate the point I made the other day about when to buy. Buying a pullback is much better than chasing a runaway market blindly. Some people bought at this high and are taking major heat on their trade, if they have not exited and taken the loss yet.

It is in vogue in the media to buy gold for various reasons. I think I have made my point about that, timing is everything.