CFTC Report: Traders Resume Accumulating Gold

EDITOR NOTE: According to the CFTC’s weekly Commitment of Traders (COT) report, speculators largely closed out their “short” positions in gold, switching over to a net “long” stance as safe haven buying seemingly resumes. As we wrote in the beginning of August, the pullback in gold provided ample opportunity for investors to accumulate more of the metal at a relatively discounted price. The latest COT report confirms our thesis, showing us the mechanics boosting gold’s bullish movements.

Net length in gold futures increased as a rise in speculative long positions was accompanied by a fall in speculative shorts. Traders also resumed accumulating gold on price correction. We expect net length in the yellow metal to rise further in the coming week as safe haven demand reemerged amidst the second wave of coronavirus outbreak in Europe, and political uncertainty in the US.

According to the CFTC Commitments of Traders report for the week ended September 29, NET LENGTH for crude oil futures declined -10 858 contracts to 461 911 for the week. Speculative long position added +688 contracts, while shorts rose +11 546 contracts. For refined oil products, NET LENGTH for gasoline increased +1 146 contracts to 56 858, while NET LENGTH for heating oil futures gained +2 456 contracts to 7 245. NET LENGTH in Natural Gas futures was up 2 121 contracts to 48 286 for the week.    

Gold futures’ NET LENGTH soared +24 599 contracts to 243 659. Speculative long positions gained +7 091 contracts while shorts plunged -17 508. Silver futures’ NET LENGTH gained +1 783 contracts to 40 730. For PGMs, NET LENGTH of Nymex platinum futures was down -436 contracts to 9 824 while that for palladium dropped -412 contracts to 2 638.

Originally posted on Action Forex