Gold is higher in euro and Swiss franc terms but slightly lower in dollars and pounds.
Gold’s technicals in euro terms are not bad and gold remains just 6.5% below the record nominal high from last August. Gold has been higher than €1,300/oz for more days in 2012 so far than in all of 2011 – 20 trading days in 2011 and 25 in 2012 so far.
Another bullish indicator is the CFTC data last week. While COMEX gold market participants in total reduced their net long positions – the swap dealers, relatively larger traders and big banks, went net long for just the third time.
Gene Arensberg of the Got Gold Report (see Commentary) reports that “as of Tuesday, July 10, as gold closed on the Cash Market in New York at $1,567.16, Swap Dealer commercial traders reported holding 54,038 gold contracts long and 53,239 short for a combined net long position of 799 lots according to data released by the CFTC on July 13.”
This is a bullish development as there has been a long period of accumulation by the swap dealers in recent months and this change of ownership may mean that COMEX gold has now transferred to stronger hands on the long side who are getting into position for gold’s next leg higher in this secular bull market.