For the last couple of weeks we have been tracking improving gold and silver Commitments of Traders (CoT) data, noting that a seasonal low (on historical average) is in the offing and also ongoing tax loss selling as reasons to expect a bounce or even a significant rally in precious metals sector.

Last week the CoT played ball as it slammed to a bullish alignment in both metals. This was especially so in silver, which is the metal that would lead a sector rally. We saw significant Commercial short covering and large Speculative long capitulation in silver.

For a more dramatic look at the quick snapback to a bullish orientation in the would-be leader, let’s use this graphic from snalaska.com:

….for more analysis and charts go HERE