Gold Market, "Stealing Candy From A Baby" Setup

I have used idioms like "stealing candy from a baby" to describe the money flows during paper operations in gold.

(1) Price decline creates fear
(2) Headlines reinforce the fear
(3) Control of trend is transferred from weak to strong hands
(4) Repeat (1) until all the candy is relieved from the weak hands.

Here's the visual representation of the four step process:

Gold London P.M Fixed and the Commercial (C) & Nonreportables (NR) Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest


Gold London P.M Fixed and the Commercial Traders COT Futures and Options ZScore Weighted Average of Long & Short As A % of Open Interest


Below illustrates a composite look at the paper operation and the growing bullish setup.

Gold London P.M Fixed And Gold Diffusion Index (DI)