Gold Speculators Trimmed Bullish Bets For 1st Time In 5 Weeks
Zachary Storella | Jul 19, 2020 02:50AM ET
Large precious metals speculators 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 262,428 contracts in the data reported through Tuesday, July 14th. This was a weekly decline of -4,930 net contracts from the previous week which had a total of 267,358 net contracts.
The week’s net position was the result of the gross bullish position (longs) dropping by -6,825 contracts (to a weekly total of 330,205 contracts) while the gross bearish position (shorts) dipped by -1,895 contracts for the week (to a total of 67,777 contracts).
Gold speculators cut back this week following four straight weeks of gains. This week’s modest pullback comes after speculators added a total of +58,745 contracts to the bullish level over the previous four weeks. The recent bullish sentiment had brought the overall standing to the highest level in fifteen weeks before this week’s slight turnaround. The speculator position has now remained above the +200,000 net contract level for a total of fifty-seven consecutive weeks, dating back to June of 2019.
h3 Gold Commercial Positions:/h3The commercial traders' position, hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -302,018 contracts on the week. This was a weekly uptick of 574 contracts from the total net of -302,592 contracts reported the previous week.
Over the same weekly reporting time-frame, from Tuesday to Tuesday, the Gold Futures (Front Month) closed at approximately $1813.40 which was an advance of $3.50 from the previous close of $1809.90, according to unofficial market data.
/h3
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.