Gold has been trading in the range of $1190-1200 in the past few days, with the market still looking to sell on the rallies. This is even after Fridays non-farm pay roll, which was better than expected and pushed the likelihood of the Federal rates hike in the upcoming meeting.
CFTC data reported on Friday that once again non-commercial longs were reduced by 7608 lots, while the shorts have increased their short position by 2826 lots, taking us back to record selling levels.
This could leave a quick short covering if the market panics, due to the strong support price level on gold. Gold ETF continues to sell from their overall holdings, having sold around 703,460 ounces this year.
XAU/XAG ratio has been the talk of the town, since it has broken the 85 level. It has come off since the highs, and is trading the 84.55 at the time of writing this report.
In other news, gold mining companies share prices are still posting a five month loss, with big name miners such as Randgold Resources down by -37% and Gold Fields -38% this year.
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