Gold getting strong
Despite finishing off the highs yesterday gold has continued to climb. It is still consolidating its hold above $1230, but a firm move above $1235 should open the way to $1240 and $1246.
Dips along the way should be viewed as buying opportunities, as long as the price holds above $1220. The news that hedge funds cut their long exposure by a record amount should not be seen as bearish, indeed it indicates a shift in positioning that should be viewed as bullish, as institutions begin buying gold once again.