Gold has had a good run, but it appears to be set up for a decline. This rally has had an effect on sentiment, turning bears into bulls. Judging by the opinion polls, when optimism was this high in the past, gold had a very high probability of being lower one to three months later. The rising bullion price has also affected trading. Hedgers are holding 40% of open interest net short, a condition that has led to losses over the next three months two-thirds of the time. Price action adds to the evidence. On Friday, price popped through the $1345 resistance intraday but failed to hold the gain, closing at the low of the ... (full story)