Gold hit my first major target - the 50% retracement of the 1999-2011 bull market. Although we exceeded the $1086 price level, we immediately reversed and moved higher, and may now have a tradeable low in place. The short term target is $1115-1130 before the decline resumes, but a move above $1140 would be a warning to the bears and may indicate a bigger rally ahead. Quite the week we have seen in the gold (NYSEARCA:GLD) market. The further drop I was looking for in last week's article played out as expected, and we headed directly to the strongest of the support levels noted - the 50% retracement of the 1999-2011 bull market at $1086, exceeding it by $5 before immediately reversing higher towards $1119. The rest of the week was spent consolidating, which is a fairly typical reaction to a large sudden price movement. We slowly drifted downwards and retested the low (exceeding it by a couple of dollars) on Friday, and as the US COMEX closed with the price exactly on that 50% Fibonacci retracement level, we then saw a decent spike higher and finished at $1099 for the week. I have said for a while that I did not expect the $1086 level to be smashed through on the first attempt. I have long suspected that we would see buyers show up at that price, since for whatever reason traders and investors seem to like targeting round number retracements. The question now is what kind of bounce can we expect to see, and how high can it take us? Hedge Fund Short Positions Outnumber Long Positions for the First Time The big news this week is that the hedge funds have a net short position for the first time since the data was compiled and regularly published. Much has been made of this statistic, however the overall speculative position (which includes hedge funds) remains net long - the latest figures are below:

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