Gold net long spec positions declined for the second week in a row as more nervous longs head for the exit. On the positive side of the ledger, in the last two weeks ETF’s inflow continue in gold, but at a slower pace. Nonetheless gold trades at a 4-week low this morning as some Wall Street Traders are calling the gold market to test the $1,300 dollar level ahead of the Fed meeting later this week.
Helping keep the pressure on the price of gold today is a stronger dollar index hitting a high today of 97.57. If this pattern continues gold will be under strong pressure to the downside no matter how much of an inflow we see into the ETF funds.
No rate is expected at the two day meeting starting tomorrow. Just in case they raise rates you need to be watching and listening to the decision at 2pm Wednesday. Sometimes the TONE of the meeting could be just as important as a rate hike decision.
So in the meantime, the market just stays in a sell bias looking for a level of support and Fed decision.
Have a wonderful Wednesday.
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