“After the recent washout, gold positioning is far from extended and this is quite a bullish signal for price strength ahead. The ‘clean’ nature of current spec positions, along with physical and long-term demand, is creating a very healthy foundation for gold to climb from,” said UBS analyst Edel Tully in a Reuters report.
Precious metals ETFs could see action this week as Federal Reserve Chairman Ben Bernanke speaks on Tuesday while later in the week markets will get an interest rate decision from the European Central Bank and U.S. nonfarm payrolls for September.
SPDR Gold Shares
Full disclosure: Tom Lydon’s clients own GLD and SLV.