The "Big Boys" are cutting their gold positions—so should you?
Hedge funds reduced their net long positions in gold by 4.1 percent, according to the Commodity Futures Trading Commission's weekly Commitments of Traders report. The continued banter about the tapering of quantitative easing has led investors to bet that interest rates and the dollar will both rise, reducing gold's appeal at these levels.
Gold continued to consolidate during early Monday trading, stalling out with a high of $1,391.40. Support comes in at $1,380 to $1,383, as the market has stayed just above here, putting in a low of $1,384.10.