Weakness in commodities confirmed by Gold

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- after slipping through the 200-day SMA yesterday Feb gold has moved to a three month low below the 200-day exp moving average of $616
- we have seen open interest in crude and copper futures contracts rise as shorts piled on exacerbating the negative price action possibly setting up for a snap back
-Feb Gold looks to be heading to $600 but it too could be setting up for a rebound if it can find some support...anyone see a key level they are watching?
- also note the weakness in teh XAU which continues to push lower after crossing converging 90 and 200 day exp mov averages a few days ago
 
Weird action. All week, Gold and particularly Silver were seemingly impervious to the mega break in energy, grains and dollar strength. Then wham, metals finally come in hard today.
 
-agreed silver getting crushed today as well...could not figure it out either as the Dollar has been strong throuhout the week
-i guess the question is this commidty move more supply driven as with inventories in oil and copper or is it confirming what the bond market has been suggestiong for some time, that is a real slowdown in the offing
 
I think Gold will bounce if the EURO and Pound find support at their breakout levels around 1.29 (euro/usd) and 1.91 (gbp/usd) - that is also a 50% fib ret. level. Until those levels are broke i'll continue to be a USD bear....I think this bounce in the USD is just an opportunity to set up a longer term short USD position via the gold market (or go long the euro or gbp on this retracement).
 
- Feb Gold Futures close down $19.20 (3.1%), largest one day drop since Oct 3, 2006 and March silver was off 4.5%
- IIt should also be noted that so far the Euro and Pound have held above those Nov breakout levels as well. Something to watch next week I guess.
 
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