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Talk of forced liquidation in gold helping the dollar


MattFC
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Talk of forced liquidation in gold helping the dollar

 

Dealers note talk that forced liquidation is underway in the gold market with a hedge fund supposedly being sold out on a margin call. The metal is down $22.50 at $881. Oil has turned down in sympathy. EUR/USD fell into the mid 1.5470s but so far is hanging onto important support around 1.5460/65. Large stops are rumored below that level.

 

Update: Sources attribute rising margin requirements in energy futures are responsible for the sell-off in gold. They are selling gold to meet fresh requirements in oil, in all likelihood.

 

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