Money managers sharply reduced their bullish positioning in gold during the latest reporting week.
The CFTC’s “disaggregated” report showed that the net-long position of money managers fell to 10,528 contracts from 55,504 the week before. The biggest share of the decline was fresh selling, as the number of short positions soared by 34,960 lots. There was also a material exodus from bullish positions, as the number of total longs fell by 10,016.
Commerzbank analysts said gold faced a “considerable headwind from speculative financial investors” as the net long declined to the lowest level in two and one-half years, thereby “contributing significantly to the slide in the gold price.”
A small excerpt from Kaplan:
Daily Sentiment Index and the traders' commitments have registered rare lopsided levels.
As of the close on Thursday, June 21, 2018, only 9% of professional traders were bullish toward gold, 10% bullish regarding platinum, and 13% bullish on silver. The Australian dollar had only 7% bulls at Wednesday's close and 10% at Thursday's close. There were 90% who were bullish toward the U.S. dollar index at Wednesday's close and 85% at Thursday's close. At the end of the day on Monday, June 25, 2018, 10% of professional futures traders were bullish toward gold.
Platinum registered an all-time record low net commercial short position of (29,187 - 31,263) or 2,076 contracts. The traders' commitments for the Mexican peso were also at a rare net long bullish level of (31,171 - 25,291) or 5,880 contracts. This suggests that emerging-market currencies, along with their equity and bond markets, have probably become irrationally oversold as investors have been moving out of non-U.S. assets into U.S. assets since roughly the second week of January 2018. It is possible that most of the gains for U.S. assets since then have been due to this switch from other global securities.
Edited by robo, 27 June 2018 - 07:25 AM.