Gold market receives even more inflow

Despite the already relatively high net positions in trading US gold futures, the gold price is still programmed to rise. New traders are still adding on rising prices.

Bullish gold market

The gold price is rising again and the past trading week ended with a bang. With a daily gain of 1.8 percent, gold closed the week well above the $ 1,500 per ounce mark. Calculated in euros, the gold price last traded at € 1,369 / ounce, just under 1 percent below its all-time high.

The CoT data

For gold futures on the US futures market, we have seen little change in the net positions of the largest dealer groups over the past two weeks. And this week, too, the trend continued. The latest CoT data show the following movements as of August 20, 2019. The net short position of the “Commercials” rose compared to last week by just under 4 percent to 336,250 contracts. This is the highest since July 5, 2016. On the other hand, the net short position of the “big speculators” increased by 3 percent to 299,993 contracts. There were no outliers in the percentage changes in net positions in the respective subgroups.

More gold futures

The open interest, ie the total of all open gold contracts on the COMEX, initially rose slightly by 0.14 percent to 594,807 contracts. By the close of trading yesterday, Friday, it was up 5.8 percent to 629,465 contracts. Here, too, the peak is a good three years back. The price of gold rose 0.9 percent last week to $ 1,526 an ounce (FOREX). Rising gold prices with parallel increase in open interest is always a sign of market strength. After all, traders are prepared to enter the futures market at attractive rates.