Trimming back Gold long

A year ago I posted that gold was looking bullish. Since then price has rallied about 25-30%. I'm cutting back a large portion of my position because I think the market could see a pullback soon.

On the weekly chart above, note how price exploded higher after breaking out of the ending diagonal pattern. This is just the behavior I was looking for. However, price is reaching $1400 which is the top of the ending diagonal and I would expect there to be some significant resistance here.

The more concerning problem is that commercial traders clearly think that gold prices are reaching overbought levels and they're hedging themselves more than at any point in the past 16 years. 

However, I don't think the bull market is over. I think we'll see a lull or correction for some time as commercial traders unwind their hedges. Then, once COT levels are more normalized, we could see higher prices.