Gold – huge redeployment on the futures market

Gold is sold

We are in turbulent times. Cash is currently “king” on the financial markets. And as stock markets slumped, practically everything in liquid assets was sold. This included gold. The precious metal came under corresponding pressure. And this development can now be clearly seen in the report numbers from the US commodity futures exchange COMEX. Numerous players in trading in gold futures have left here. Here are the latest changes in the positions of the largest dealer groups as of March 17, 2020.

 

CoT data

The net short position of the “Commercials” fell by 8 percent compared to the previous week to 301,709 contracts. This was the lowest level since November 12, 2019. Especially the swap dealers (including large banks) closed short positions in this group. The pure sales positions decreased by 37,961 contracts. This means that forward sales were reduced by 118 tons.

 

Huge shifts

On the other hand, the net long position of the “big speculators” fell by almost 6 percent to 281,916 contracts. Managed money (hedge funds, investment companies) reduced its net purchases by 26 percent to 154,079 contracts. This was largely done by closing long positions, which fell 55,663 contracts compared to the previous week, while only 443 new short positions were created. This means that this group sold the equivalent of 173 tons of gold forward to stock up.