Gold drops to three-week lows after Fed statement - Ole Hansen, Saxo Bank Head of Commodity Strategy

Gold drops to three-week lows after Fed statement - Ole Hansen, Saxo Bank Head of Commodity Strategy. The double dose of reduced focus on Ukraine and the recent relatively hawkish FOMC statement has put gold back on the defensive. So much so that the positive trend we have witnessed since the early days of January could now make way for a period of consolidation as Gold is now seeing the longest losing streak since November. Given the current pressure to reduce exposure there is an increased risk that a retest of the 200-day moving average, currently at 1298 USD/oz, could be tested as well. The increased net-long positioning by hedge funds during the past three weeks has primarily been driven by short covering with no new buying having been seen since the week commencing February 24. (VIEW LINK)