Hedge funds bullish on gold but reluctant chasing the price above $1,800 – by Neils Christensen (Kitco News – July 7, 2020)

https://www.kitco.com/

(Kitco News) – The latest trade data from the Commodity Futures Trading Commission (CFTC) showed that for the third week in a row hedge funds continued to add to their bullish bets; however, analysts note that momentum is weakening as speculators are reluctant to chase the market at current levels.

The CFTC’s disaggregated Commitments of Traders report for the week ending June 30 showed money managers increasing their speculative gross long positions in Comex gold futures by 11,933 contracts to 173,526.

At the same time, short bets rose by 2,893 contracts to 34,971. Gold’s net-long positioning currently stands at 138,555 contracts, up nearly 7% compared to the previous week.

The rise in gold’s net length is the lowest in the last three weeks. However, the momentum was enough to push gold prices above $1,800 — the highest level since 2011.

Although bullish bets increased last week, analysts at MKS PAMPs group said that there are enough headwinds in the marketplace to keep gold below $1,800 an ounce.

For the rest of this article: https://www.kitco.com/news/2020-07-07/Hedge-funds-bullish-on-gold-but-not-chasing-the-price-above-1-800.html