Gold instead of money: more futures traders want real metal

US gold market
In the past week, the gold price came under more pressure. However, a trend continued on the US derivatives market. Open interest continued to decline, and requests for physical delivery of the gold traded in the form of futures continued to grow. Let us consider the CoT data as of August 11, 2020 with the positions of the actors combined in trading groups.

CoT data
The net short position of the “Commercials” fell by a further 2.9 percent to 268,331 contracts compared to the previous week. It was the third week in a row that this group of dealers had net sales declining. On the other hand, the net long position of the “big speculators” fell by 6 percent to 224,053 contracts. It is the lowest value since June 9, 2020. In particular, the subgroup of “managed money” (hedge funds, investment companies) separated from paper gold. Their net purchases fell by almost 14 percent to 97,692 contracts.

Open interest keeps falling
Open interest, i.e. the sum of all open gold contracts on the COMEX, fell by 1.5 percent compared to the previous week to 553,345 contracts. By the close of trading on Friday, it was another 2 percent down to 542,380 contracts. A total of 542.38 million ounces or 1,686.99 tons of gold were traded on the COMEX in the form of futures.