from Dan Norcini:

Gold seems to have run out of gas up near the $1340 level as it has been unable to extend its near month long gains here at the end of February. Upside momentum is waning and that requires close attention.

There are several things that I would like to bring up right now. The first is the nature of the buying that has been driving this market higher since the first of the year. Gold started 2014 near the $1,200 level and has since then put on $140, the largest portion of that this month when it moved $100 higher.

Based on the COT reports since the beginning of this new year, one can easily observe that the largest portion of the buying this year has come from whole scale short covering. Here are the numbers:

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