Fund Managers Return To Buy Gold - CFTC Data
New York (May 12) Large speculators returned as buyers in gold futures and options positions on the Comex division of the New York Mercantile Exchange in the latest weekly commitments of traders report from the Commodity Futures Trading Commission, following mixed action by these traders in the previous report.
These fund managers narrowed their bullish positions in silver in the current CFTC reports, which are as of May 6. In the previous reports, large speculators were divided in their silver-market activity. In the platinum group metals, these traders boosted their platinum net-long positions, but trimmed their palladium positions in both the agency’s disaggregated and legacy reports. For copper, fund activity was mixed, as large speculators reduced their new net-long position in the disaggregated report and added to their net-short position in the legacy data.
Precious metals prices rose, while copper prices fell during the timeframe measured by the report. Comex June gold gained $12.30 to $1,308.60 an ounce. July silver rose 10.70 cents to $19.645. June palladium rose $10.50 to $818.40. Nymex July platinum gained $26.70 to $1,458.10. Comex July copper fell 1.60 cents to $3.0570 a pound. After the reporting period closed, precious metals prices retreated while copper gained.
Managed-money traders returned as buyers in the gold disaggregated report, lifting their net-long to the highest in a month – 102,895 contracts. These traders added 12,556 gross longs and cut 386 gross shorts. Producers’ net-short position rose as they added more gross short positions than gross longs. Swap dealers also saw their net-short position rise as they added shorts and cut longs.
In the gold legacy report, non-commercials pushed their net-long position to its highest level since April 1. They added 15,830 gross long contracts and added 778 gross shorts. They are now net-long 127,147 contracts. Commercials are net-short and raised that position by adding more gross shorts than gross longs.
Barclays analysts said the rise in net speculative positioning in Comex gold was mostly from new longs established. “Long positioning is now at its highest level in more than a month, but this week’s data will be more telling given the move in prices since last Tuesday,” the bank said.
They see the recent gains in gold as unsustainable. “A stronger dollar will likely lead gold lower, given what we expect to be USD-supportive data releases this week. The floor looks to be softening for gold, with physical demand not making up for soft investor demand,” Barclays said.
Large speculators cut exposure in silver in both reports. For the second week, managed-money accounts reduced their net-long position in silver, cutting their holdings nearly in half, to 988 contracts. They added 450 gross longs but also added 1,324 gross shorts. Producers decreased their net-short position when they cut more gross shorts than gross longs. Swap dealers increased their net-long position by adding more gross longs than gross shorts.
Non-commercials slightly reduced their net-long position in the silver legacy report, lowering it to 8,527 contracts by adding 369 gross longs and 1,408 gross shorts. Commercials are net-short and reduced that position by adding gross longs and cutting gross shorts.
(Source: KITCO)
