from Gold Core:
Gold and silver were both down for the week – 5.76% and 4.14% respectively.
There is blood running in the gold market this morning after vicious selling which began on Friday afternoon and continued in Asian trading and through into European trading. Gold has fallen another 4.4% today after a huge number of stop loss orders were triggered at $1,480/oz pushing gold lower.
Gold is now testing the next level of support at $1,400/oz. A close below $1,400/oz today could lead to further weakness and a test of the next level of support at $1,300/oz. Further weakness seems likely in the short term as the trend is most definitely down and the paper shorts firmly have the upper hand and are pressing their advantage.
The scale of the sell off is incredible and even some of the bears have been surprised by it and are questioning the catalysts for the $150 sell off since Friday. Sentiment has been poor for weeks and the unfounded rumour regarding Cyprus gold reserve sales led to further weakness last week.
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