I think the chart speaks for itself. Gold has managed to put in the worst WEEKLY CLOSE since July 2010, three and a half years ago.
The bounce today was feeble, considering the extent of the downdraft on Thursday. It did manage to close above $1200 but just barely. The fact that the HUI could not hold its gains on the day is alarming to me. I would have hoped that it could hold its bounce without attracting more selling.
Based on this, I would have to lean towards saying the gold market still looks heavy to me and could come under additional pressure next week. The one saving grace that it will have working in its favor is that the Bears have made a lot of money this year and might still be looking to cover some additional shorts and book those gains before the end of the year. That, plus the fact that rarely do traders pile on large positions heading into the end of the year; they generally tend to do the opposite. That might take some of the pressure off of the market, temporarily.
Bulls need some serious help very soon....
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