GOLD looks negative in short-term

• Gold is showing short-term weakness and IMF is said Wednesday it will soon begin selling to the market the remaining 191.3 metric tons of gold it has slated for release, though the sales will be conducted in phases to avoid disrupting markets. The sale of gold, currently worth nearly $6.9 billion, will begin "shortly," the fund said in a brief statement and it may weigh down on prices.
• Billionaire George Soros’s Soros Fund Management more than doubled its holding in the biggest gold exchange-traded fund in the fourth quarter after bullion advanced 8.9% to a record. The $25-billion New York-based firm became the fourth-largest holder in the SPDR Gold Trust, adding 3.728 million shares valued at $421 million, according to a filing with the US Securities and Exchange Commission on Tuesday. Its investment was worth about $663 million, the fund’s largest single investment, as of December 31.
• India held on to its position as the world’s largest gold-consuming nation in 2009, mainly due to higher consumer demand during the fourth quarter, according to the World Gold Council. For every 100 gms of gold bought across the world, 14 gms were picked up by Indians, who continued to buy gold for jewellery and investment purposes despite the average price of gold in 2009 being 12% higher at $972.35 an ounce in the international market from the 2008 levels.
• Dollar Index is showing strength which means pressure on commodities and GOLD shows signs of short-term negative as IMF supply would pressurize the price.