Commitments of Gold Futures Traders reveal large speculators (hedge funds and money manager) decreasing their gold long positions (-5.5%) and increasing their short positions by +5.8%. Commercial gold traders were much more active and slashed their long positions by 18% and reduced their short positions by 10%.
This resulted in net commitments of futures gold traders to the lowest reading in 10 weeks. The open interest (green line) is sinking again signaling disinterest in the yellow metals has started. Finally these positions go in the right direction after being way too high for almost a year. Some of the large dealers on the Comex advised they are reducing their trading in the New York gold futures as they had
lately heavy losses due to the volatility in the market (attachment 1).
We guess that is the price to pay being overly short in a very volatile gold bull market.
——————————
