Money Managers (“Funds”) continue to cut longs and add shorts, while Gold remains oversold technically and overbearish from a sentiment perspective. This has been the situation since May, and yet Gold continued to fall. I see this as a massive build-up of fuel for the coming rally.

China controls the dollar price of Gold via USD/CNY—and XAU/CNY to a lesser extent—which is the catalyst for any moves in Gold.

USD/CNH (offshore USD/CNY) fell ahead of trade talks between the U.S. and China last week, something I predicted on Aug 8 (

Gold finally caught a bounce as a result.