Gold Speculators Sharply Dropped Bullish Bets
Zachary Storella | Oct 20, 2019 01:42AM ET
Gold Non-Commercial Speculator Positions:
Large precious metals speculators strongly cut back on 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 253,027 contracts in the data reported through Tuesday, October 15th. This was a weekly decline of -22,536 net contracts from the previous week which had a total of 275,563 net contracts.
The week’s net position was the result of the gross bullish position (longs) decreasing by -15,013 contracts (to a weekly total of 319,370 contracts) while the gross bearish position (shorts) increased by 7,523 contracts for the week (to a total of 66,343 contracts).
Gold speculators sharply reduced their bullish bets for the second time out of the past three weeks and have now trimmed off a total of -59,417 contracts in that time-frame. Previously, gold speculators had been steadily raising their bullish positions which culminated with a jump to a three-year high on September 24th at over +312,000 contracts. Currently, the overall bullish standing has now dipped to the lowest level since July 23rd, a span of twelve weeks.
Gold Commercial Positions:
The commercial traders' position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -288,275 contracts on the week. This was a weekly boost of 22,667 contracts from the total net of -310,942 contracts reported the previous week.
Gold Futures:
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Over the same weekly reporting time-frame, from Tuesday to Tuesday, the Gold Futures (Front Month) closed at approximately $1483.50 which was a decline of $-20.40 from the previous close of $1503.90, according to unofficial market data.
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