Hedge Fund Gold Buying Pushes Speculative Interest To 11-Week High
“While gold has recovered more than 50% of the July-December selloff, the net long has recovered by less than 20%. This highlights how funds have struggled to find a strong enough reason to get back into gold amid worries of rising dollar and bond yields. With both of these risks now fading, we are seeing underlying support from funds playing catch-up,” he said.
Although funds have had a an inconsistent interest in gold so far this year, they remain extremely bullish in silver as net bullish positioning increased for the eighth consecutive week, according to the latest trade data.
The disaggregated report showed money-managed speculative gross long positions in Comex silver futures rose by 5,6701contracts to 89,710. At the same time, short positions rose 404 contracts to 12,278. Silver’s net length now stands at 77,432 contracts, up 7% from the previous week.
Gold-could-retreat-back-to-$1,200-on-technical-and-fundamental-factors
RSI Oscillator is currently pointing to overbought levels, while prices are close to a reversal point at the 61.8% Fibonacci level at $1,280.10.
That level also coincides with the possible end of the potential ABCD pattern.
Edited by Rogerdodger, 28 February 2017 - 09:20 AM.