GOLD traders and speculators have cut both their bullish and bearish bets on the precious metals for the first time in two months as the gold price continues to rally strongly, supported by strong and rising physical demand. Our decision to start accumulating core long position at levels around $1,280 and $1,320 has proven to be a good decision and our expectation that prices would surge through $1,350 resistance last week was spot on. We maintain a strongly bullish outlook in the short term as momentum continues to build and we expect that $1,400 will be breached before the middle of the week. Although we have taken some profits on gold's move, we remain long and are now targeting $1,410.00 as our next take profit level. We have implemented stop loss orders at $1,345 to protect profits on our existing long positions.

Compass Direction

Short-Term        Medium-Term

BULLISH          BULLISH

Gold

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