Gold Market Recap Report
Wed 20 Feb 2013 14:33:21 CT
Related Keywords: Metals

The gold market washed out aggressively today with technical and fundamental considerations weighing on prices. One portion of the trade fretted over the prospect of US and global slowing in the event that the US decided to accept automatic spending cuts at the end of the month, while others might have prematurely fretted over the prospect of hawkish dialogue from the Fed meeting minutes. In any regard, April gold prices fell down to the lowest level since mid July of 2012. With the last COT positioning report showing the net spec long in gold to be rather burdensome, it goes without saying that part of the declines today were the result of stop loss selling. The press was touting the violation of several key moving average points today and that might have prompted some longs to stand aside from the gold market. Gold was obviously undermined as a result of the FOMC meeting minutes, perhaps because 1 Fed member was reportedly against ongoing asset purchases.


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