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Short gold exposure cut while copper bears take breather - TDS

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Feb 1, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
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    FXStreet (Delhi) – Research Team at TDS, lists down the CFTC commitment of traders report for the week ending January 26th, 2015.

    Key Quotes

    “Platinum specs played follow the leader with gold to the upside, as those pondering weaker economic data would prompt a more dovish Fed, triggered lower yields and a pricing out of rate hikes in 2016—while short covering seemed elevated, the picture hardly changes for the specs, with both hefty longs and shorts remaining entrenched in their battle.

    Copper investors took a bit of a breather on their bearishness, covering nearly 10% of short interest, after taking short positioning to a staggering new historical high of 57% of total open interest. With little in the way of China data to assist, the covering was likely set off by the boost in commodity sentiment and cost expectations as oil moved higher on potentially more supportive fundamentals on the horizon.

    Specs aggressively covered their short gold exposure and built new long positions as markets increasingly decided that recent economic underperformance will prompt the Fed to tilt policy toward a more dovish stance. Net long gold positions were up an equivalent 4.7% of open interest. Indeed, investors called it correctly, as price reached a high just above $1,128/ oz after the FOMC put a dovish spin in its communique. Silver investors followed gold, but even more aggressively as net long exposure increased an equivalent of some 5.4% of open interest.”
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