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Gold manages to avoid a weekly close below $2k (part 2)

Following on immediately from the previous, part 1 update on gold, here is part two. So, head of the close  on Friday we had the latest data from the CFTC on speculative positioning (the report covers open interest as of the prior Tuesday) and that showed no reduction in open long interest. However, I would suggest that the subsequent fall, extended upon on Friday would have reduced that, but it cannot be yet proved here. That said, it is clear the market is still overweight and that was the problem for Gold on Friday afternoon. I also noted in that update; that the daily chart on Gold does not look too clever and that has not yet changed, as I view it again this morning. The failure of any pullback in the price from an all time record high last week (at 2,135.39) to hold above the former wave 1 high (at 2,009.41) was technically not favourable at all. That could risk a deeper reversal, but at the same time, fresh news and events might help the outlook. However, in the absence of that, the metal is still suffering greatly from the impact of that massive outside day reversal that was set in place and reported on here last week as soon as it was confirmed. Potential support points are now at 1,979.80 and then at 1,962.47. Gold has fallen again today after stalling earlier at 2,007.85. The drop back comes as the USD/JPY rises above 145.50 today. Gold has fallen back very close to the low seen on Friday, reaching 1,994.93 a little earlier. It is currently trading an 1,997.20
 

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