Gold prices have moved very little since testing the up trend line during the week of May 14. While prices have traded in a small range on low volume, there is another feature worth noting. Over the last month gold has been aggressively liquidated. Gold has lost 223,000 contracts of open interest. Both existing longs and existing shorts have liquidated position. The drop of 223 k contracts is quite material. Gold open interest is now at its lowest point in the year. Typically this type of liquidation occurs with sizable movement in price. The fact that prices are so stable during this liquidation suggest the liquidation is being done through the delivery mechanism. In other words gold is leaving the exchange and likely leaving the US. In the longer term prices are showing support against the up tend line and still shows sizable upside potential. Price need to break 1310 to signal its next uptrend.