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The long positioning in gold seemingly (at.....>

GOLD
GOLD: The long positioning in gold seemingly (at least partially) started to
capitulate on Thursday, as longer end U.S. Tsy yields shot higher (forcing the
Fed to outline liquidity measures and widen its asset purchases), with the DXY
bid, while the ECB disappointed markets.
- We have pointed to stretched longs and the potential for margin call
requirements in other assets as limits for gold in recent weeks, but it seems
like the above cocktail provided the perfect mix for a deeper pullback,
facilitating a tumble through key support in the form of the Feb 28 low (coupled
with various other levels).
- Spot last deals $15/oz lower at $1,561/oz.
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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