Just when it looked like gold futures - which still, unfortunately, dictate the price of physical precious metals - were ready to turn bullish, last week's Commitments of Traders report ((COT)) revealed that commercial traders (usually right at big turns) had gone massively short, while speculators (usually wrong at turning points) went aggressively long.
That kind of action usually precedes a price drop, and this time was no exception. On Thursday and Friday, gold fell from $1,294 to $1,277.
Presumably, this flushed a bit of the bearish imbalance out of the futures market by forcing