The gold price suffered another down day on Tuesday as large investors reduce long positions built up in the market in the run up to the metal's January 22 high of just under $1,308 an ounce.
Net long positions – bets that the price would go up – held by hedge funds and other so-called "managed money" speculators climbed by 10 million ounces in January, reaching the highest level since December 2012.
But the apparent averting of a single currency crisis sparked by the Greek election provided the opportunity to liquidate some of the bullish positions and shift focus back to US economic fundamentals, the rampant dollar and a likely June rise in interest rates.
At $1,260 an ounce late on Tuesday, the metal is still trading up some $80 or 6.4% in 2015, but the strong upwards momentum was broken last week Thursday when the price plunged $35 during the worst trading session in more than a year.
Is the bottom really in? Could there be a final capitulation just ahead of us? Have you plenty of cash to take advantage of the coming bargain prices?
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