$Gold Weekly

As has been mentioned, short selling of gold futures contracts under very tight supply conditions have led to sturdy support of the gold price, with fewer and fewer sell-side participants. Gold lease rates are still positive and above treasury bill rates.

That means the gold price did not plumb new lows as has been forecast repeatedly. An equity sell-off might result in a plunge, but prices are well below their inflation-adjusted norm. The market is setting the price.

Technicals are correct in showing much reduced downside momentum.

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-F6