Gold Speculators Cut Back On Bullish Bets For 2nd Straight Week
Zachary Storella | Apr 12, 2020 02:37AM ET
Gold Non-Commercial Speculator Positions:
Large precious metals speculators reduced their bullish net positions in the Gold futures markets again 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 248,942 contracts in the data reported through Tuesday, April 7th. This was a weekly decline of -9,907 net contracts from the previous week which had a total of 258,849 net contracts.
The week’s net position was the result of the gross bullish position (longs) tumbling by -7,649 contracts (to a weekly total of 279,880 contracts) while the gross bearish position (shorts) increased by 2,258 contracts for the week (to a total of 30,938 contracts).
Gold speculators trimmed their bullish position for the second straight week and for the sixth time in the past eight weeks. These declines have dropped the overall bullish standing to its lowest level in thirty-eight weeks, dating back to July of 2019. Despite the speculator decreases through Tuesday, the gold price had a strong week and finished up by about four percent on the week.
Gold Commercial Positions:
The commercial traders' position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -275,611 contracts on the week. This was a weekly increase of 8,348 contracts from the total net of -283,959 contracts reported the previous week.
Gold Futures:
Over the same weekly reporting time-frame, from Tuesday to Tuesday, the Gold Futures (Front Month) closed at approximately $1683.70 which was an advance of $87.10 from the previous close of $1596.60, according to unofficial market data.
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