Gold Speculators Continue To Shed Bullish Bets For 4th Time In 5 Weeks
Zachary Storella | Jun 07, 2020 01:49AM ET
Large precious metals speculators once again reduced their bullish net positions in the Gold futures markets this week, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.
The non-commercial futures contracts of Gold futures, traded by large speculators and hedge funds, totaled a net position of 219,034 contracts in the data reported through Tuesday, June 2nd. This was a weekly drop of -18,880 net contracts from the previous week which had a total of 237,914 net contracts.
The week’s net position was the result of the gross bullish position (longs) falling by -15,952 contracts (to a weekly total of 272,196 contracts) while the gross bearish position (shorts) increased by 2,928 contracts for the week (to a total of 53,162 contracts).
Gold speculative net positions continued to decline this week for the fourth time in the past five weeks and for the eleventh time in the past fifteen weeks. Gold bets have now fallen by -32,754 contracts in just the past two weeks. The overall bullish position has come down to the lowest level since June 18th of 2019, dating back fifty weeks.
h3 Gold Commercial Positions:/h3The commercial traders' position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -256,623 contracts on the week. This was a weekly uptick of 17,699 contracts from the total net of -274,322 contracts reported the previous week.
Over the same weekly reporting time-frame, from Tuesday to Tuesday, the Gold Futures (Front Month) closed at approximately $1725.20 which was a rise of $20.40 from the previous close of $1704.80, according to unofficial market data.
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