Gold Speculators Sharply Cut Bullish Positions To Lowest Since May
Zachary Storella | Oct 17, 2016 02:25AM ET
Gold speculative positions dropped last week by -50,289 contracts
GOLD Non-Commercial Positions:
Gold speculator and large futures traders sharply cut back on their gold bullish positions last week for a second straight 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 Comex gold futures, traded by large speculators and hedge funds, totaled a net position of +195,219 contracts in the data reported through October 11th. This was a weekly change of -50,289 contracts from the previous week’s total of +245,508 net contracts that was registered on October 4th.
The decline in speculative positions of gold brought the overall level under the +200,000 contract threshold for the first time since May 31st when positions totaled +197,135 contracts.
Gold Commercial Positions:
In the commercial positions for gold on the week, the commercials (hedgers or traders engaged in buying and selling for business purposes) reduced their overall bearish positions for a second week to a net total position of -221,199 contracts through October 11th. This was a weekly change of +50,043 contracts from the total net position of -271,242 contracts on October 4th.
GLD ETF:
Over the weekly reporting time-frame, from Tuesday October 4th to Tuesday October 11th, the price of the (GLD) Gold ETF (NYSE:GLD), which tracks the gold spot price, dipped from approximately $120.97 to $119.55, according to ETF price data of the SPDR Gold Trust ETF (GLD).
*COT Report: The weekly commitment of traders report summarizes the total trader positions for open contracts in the futures trading markets. The CFTC categorizes trader positions according to commercial hedgers (traders who use futures contracts for hedging as part of the business), non-commercials (large traders who speculate to realize trading profits) and nonreportable traders (usually small traders/speculators).
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