Last week, more gold futures contracts were signed in the USA. The gold price consolidation has not intensified for the time being. The actual gold traders are somewhat more optimistic about gold.
Gold price recovers slightly
Last week, gold prices gained some ground after heavy losses at the end of the previous week. The U.S. futures market traded even more gold futures, with net positions declining. This is shown by the latest CoT data from the COMEX as of November 12, 2019.
Physical gold traders more optimistic
The net short position of the “Commercials” fell by almost 5 per cent to 301,468 contracts. The net sales of the actual physical gold traders (“Prod/Merch/Proc/User”) fell by 12 per cent to 122,571 contracts. One could interpret it that way: Part of the “Smart Money” is geared to rising prices because hedging against a falling gold price has been reduced.
Funds reduce long positions
On the other hand, the net long position of the “big speculators” fell by 4 per cent to 267,066 contracts. In particular, the managed money sub-group (hedge funds, investment companies) separated from long positions in the wake of the fall in the gold price. Their net purchases fell by 11 per cent.
Open interest at record high
Open Interest, the sum of all open gold contracts on COMEX, rose by 2.65 percent compared to the previous week and reached a new record high of 708,463 contracts in the weekly CoT data. By the close of trading yesterday, Friday, it had risen another 0.1 percent to 709,330 contracts.
Short-term market strength
The gold price rose by 0.5 percent last week to 1,466 US dollars per ounce (FOREX). Classification: Sentiment on the American gold futures market has brightened somewhat in the short term. The big sell-off, in which there is a large adjustment in net positions, has not yet taken place.