Precious Metals FUTURES Update

Precious Metals consolidated slightly in a lateral way showing the Bull Trend is still well in place.

Gold could be the weakest link of all as Industrial Metals have been performing well through the US Unemployment rate.

Gold Futures stalled at the strong 632.00 resistance. We favor a bit of consolidation towards $618 or $613.5 as Gold is in overbought territory and has created bearish reversal patterns the last two sessions. It's a contertrend call as the Buy on the dips is still is the most rewarding trade.

Funds have been increasing their net long positions in Comex Gold by 8666 contracts to 64716 as reported by the COT a notable change: they have been sellers in the 10 of the 11 preceding weeks.