There was a decline for a few months, but now the picture is different: hedge funds are picking up gold again. What has changed?
The Commodity Futures Trading Commission (CFTC) report, which contains trading data for the past week ended June 23, shows the sudden change in hedge funds in gold. The CFTC regulates the futures and options markets in the USA.
CFTC report: hedge funds switch back to gold
The independent agency’s data, as precious metals expert Kitco reports, revealed that asset managers have expanded their speculative positions. For example, gross long positions in Comex gold futures rose by 25,648 contracts – totaling 161,593 contracts in the past week. In addition, compared to the previous week, net long positions rose by 24 percent to 129,515 contracts. “This corresponds to a purchase of 119 tonnes on the futures market during this period,” quotes Kitco analysts from Commerzbank.At the same time, there were only 821 more contracts in short bets in KW 26, resulting in a total of 32,078 short positions.Ole Hansen, who is responsible for managing raw materials strategy at Saxo Bank, had previously noticed a change in the past few months, as Kitco reports: hedge funds have placed 50 percent fewer bullish bets. The recent renewed interest in the precious metal could now be a positive indication – even a signal for the next record level in gold?