gold comment ...week ending 14-feb
With open interest continuing to fall, now down to 208,483 from the high of about 241,000, a drop of about 30,000 in a fortnight where gold lost some $30/oz, and with the commercials still short and specis still long, which way would golf go the week ahead?
Gold rests on major support on or just below $350/oz.
As of Friday 14-Febraury the lowest level that can be tolorated would be about $343/oz, before a break in the upward momentum incurs and could possible sent gold down to about $318/oz.
This level is achievable if the pace of long liqudiation continues.
In the meantime, let the market sort it self out at about $350/oz and indicate direction, while we keep an eye on the open interest and trader's commistements to be released earlier next week.
