A hawkish Powell scaring gold bulls from the marketplace – by Neils Christensen (Kitco News – December 13, 2021)


(Kitco News) – Hawkish comments from Federal Reserve Chair Jerome Powell continue to drive hedge funds away from gold and silver, according to analysts, after reviewing the latest data from the Commodity Futures Trading Commission (CFTC). The latest data shows that sentiment in gold is at its lowest point since late-October as funds liquidate their bullish bets.

The CFTC disaggregated Commitments of Traders report for the week ending Dec. 7 showed money managers dropped their speculative gross long positions in Comex gold futures by 12,402 contracts to 125,067. At the same time, short positions dropped by 1,058 contracts to 44,326.

Gold’s net length now stands at 80,741 contracts, down more than 12% compared to the previous week. During the survey period, gold prices were fairly steady, with prices unable to test resistance at $1,800 an ounce.

“Gold spot prices came under pressure after Chair Jerome Powell’s hawkish comments about a faster taper of the Fed asset purchase program. A sooner end to tapering would likely push up the 10-year Treasury rate earlier than previously anticipated, increasing the opportunity cost of holding non-yielding assets such as gold,” said commodity analysts at Société Générale.

For the rest of this article: https://www.kitco.com/news/2021-12-13/A-hawkish-Powell-scaring-gold-bulls-from-the-marketplace.html