precious metals flash

Disappointed longs, together with short sellers pressured Gold to a low of 1626.40 on Friday. US Nonfarm Payrolls then surprised to the negative, which helped the precious metal to recover to 1647.60, as some shorts got squeezed out. France got a new president, the Greek pro-bailout parties failed to win majority in parliament and Germany’s CDU/FDP lost in Schleswig-Holstein, which waived on risk and the white metals complex, where Platinum fell to as low as 1512 USD.  Net futures and Options positions didn’t change much, Gold longs increased by 1.3 Mio. to 18.7 Mio. as per last Tuesday, which was when Gold traded quickly above 1670 and these longs must have been wiped out again later in the week. 1620 seems the crucial level for Gold on the downside, while 1650 sees some psychological resistance. 1670 however would have to be reclaimed to become bullish and with the 50 day moving average having crossed the 100 day to the lower side, the technical picture is worsening.