Short Gold: Citigroup

Strategists at Citigroup on Monday said that sour-looking charts augur more bearish price action for gold.
Jeremy Hale, a global macro strategist at Citigroup, is out with the report with a pithy but foreboding title: “Trade Ideas: Short Gold.”
Mr. Hale remarked that U.S. gold futures closed last week below “important support levels,” a signal that buyers might not be chomping at the bit to buy until prices go lower still.
And Mr. Hale said that, based on trader positioning reports from the U.S. Commodity Futures Trading Commission, a growing number of bets on a rising dollar portends less willingness to buy gold.
From Mr. Hale:

“With gold having no yield and limited industrial use, as we approach Fed tightening (or expectations thereof) we still think gold has no friends. This leaves a bleak price outlook for the yellow metal, so long as the Fed hawkish tone and USD bid remain.”

The SPDR Gold Shares (GLD) slipped 0.2% on Monday, losing ground for the fourth day in a row. GLD ended last week at its lowest price since April 2010.
Tatyana Shumsky at The Wall Street Journal highlights the link between the rising dollar and falling gold in a story Monday morning:

“You have everything going in the dollar’s favor and the stronger the dollar gets, the more pressure you’ll see on gold,” said Thomas Capalbo, a broker with Newedge in New York.

Dour market sentiment on gold isn’t stopping popular gold miner ETFs from rebounding after last week’s brutal declines. Market Vectors Gold Miners ETF (GDX) adds 1.2% and the Market Vectors Junior Gold Miners ETF (GDXJ) gains 1.4%.http://blogs.barrons.com/focusonfunds/2014/11/03/short-gold-citigroup/http://blogs.barrons.com/focusonfunds/2014/11/03/short-gold-citigroup/