Funds Increase Bullish Gold Positioning, Pessimistic Toward Silver
If you don’t like the gold market, just wait a week.....MORE
Large speculators moved back into gold during the last reporting week for positioning data compiled by the Commodity Futures Trading Commission, although these accounts remained pessimistic toward most of the metals with more industrial characteristics, including silver, analysts said Monday.
This continued a back-and-forth trend in the market prior to the breakout higher that occurred at the end of last week. Previously, gold had been range-bound, with speculators buying into dips but selling rallies.
During the week-long period to May 28 that was covered by the CFTC report, Comex August gold rose by $3.90 to $1,277.10 an ounce, while July silver slipped 9 cents to $14.32.
Net long or short positioning in the CFTC data reflect the difference between the total number of bullish (long) and bearish (short) contracts. Traders monitor the data to gauge the general mood of speculators, although excessively high or low numbers are viewed by many as signs of overbought or oversold markets that may be ripe for price corrections.
The commission issues two reports each Friday -- a so-called “legacy” report and a “disaggregated” report, started in 2009 and meant to offer more detail.
The latest round of CFTC data show that “speculators increased their net-long positions in gold while conversely increasing bearish positions on both silver and copper on fresh concerns regarding the global industrial economy,” said a research note from BMO Capital Markets.
TD Securities issued a similar sentiment....
Also at Kitco:
Gold Is On Track To Make A New Yearly High
Here's three months of futures action via FinViz:
You would really rather have the commercials going long rather than the funds but they have been sellers for months. See the green line in the second panel of the one-year chart:
$1324.50 last
