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Gold longs to near all-time highs - TDS

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Apr 18, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    Research Team at TDS, lists down the CFTC Commitment of Traders Report for the Week Ending April 12th, 2016.

    Key Quotes

    “Gold specs have used a lot of firepower once again and boosted their longs to near all-time highs at 306K lots, which suggests prices will have an even tougher time finding additional upside. Decreased market volatility and improving Chinese data suggesting a more hawkish path for the Fed makes this especially likely.

    Silver specs saw a further jump into record territory at ~87K lots, but upside price gains have also failed to materialize. Any movement by the Fed away from lower for longer will spook heavily overextended specs into cutting these outsized bets quite sharply.

    Concern that US auto sales may continue to remain under pressure following recent US durable goods weakness and lackluster China automotive demand prompted money managers to sharply cut their net long palladium positions by a large 11.5% of open interest. Specs aggressively grew short positioning amid expectations that prices may migrate materially lower in response to possible pending auto catalyst weakness.

    Fear that somewhat better-than-expected Chinese economic numbers would remove the impetus for the PBoC to increase monetary accommodation and down trending prices convinced money managers to reduce net long copper exposure by a very robust 5.9% of open interest. Specs grew short positioning as they attempted to protect against a sharp price drop in the previous week.”
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