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Gold Speculators Sharply Lowered Bullish Net Positions This Week

Published 12/10/2017, 03:25 AM
Updated 07/09/2023, 06:31 AM

Gold COT Futures Large Trader Positions

Gold Non-Commercial Speculator Positions:

Large metals speculators sharply cut back on their 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 173,329 contracts in the data reported through Tuesday December 5th. This was a weekly decrease of -51,088 contracts from the previous week which had a total of 224,417 net contracts.

Speculative positions had increased the previous two weeks before this week’s sharp decline which was the largest one week fall since May 24th 2016 (-59,656 contracts). The gold level is now at the lowest level since August 8th when net positions totaled +148,837 contracts.

Gold Commercial Positions:

The commercial traders position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -189,890 contracts on the week. This was a weekly gain of 56,651 contracts from the total net of -246,541 contracts reported the previous week.

Gold COT Futures Large Trader Vs GLD ETF

GLD (NYSE:GLD) ETF:

Over the same weekly reporting time-frame, from Tuesday to Tuesday, the GLD ETF, which tracks the price of gold, closed at approximately $120.32 which was a decrease of $-2.49 from the previous close of $122.81, according to unofficial market data.

Latest comments

Additionally, I'm wondering if anyone tried calling the GLD hotline at (866) 320 4053 in search of numerical details on GLD's insurance? The prospectus vaguely states "The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate which does not cover the full amount of gold held in custody." When I asked about how much of the gold was insured, the representative proceeded to act as if he didn't know and said they were just the "marketing agent" for GLD. What kind of marketing agent would not know such basic information about a product they are marketing? It seems like they are deliberately hiding information from investors.
"GLD ETF". . Mr. Storella, I often see you reference this fund. I've spent quite a bit of time doing my due diligence into GLD. Would you happen to know why there is a clause in the GLD prospectus that states GLD has no right to audit subcustodial gold holdings? The GLD managing organizations sure went out of their way to create this glaring audit loophole. What is the purpose of this loophole? Additionally, the GLD organizations promise that this fund is 100% backed by actual physical gold but yet they staunchly deny retail investors the right to any of their listed 'gold'.. . CNBC's Bob Pisani also made a highly publicized visit to GLD's gold vault in a segment called Gold Rush: The Mother Lode. GLD's administration organized this visit to show that GLD's gold actually exists. However, the gold bar held up by Mr. Pisani showed a serial number of ZJ6752 which did not show up on the latest bar list during that time. It was later found that this "GLD" bar actually belonged to ETF Securities.
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