Although the selling pressure of speculative market players has increased significantly on the futures markets, the gold price showed an extremely robust trend in the past trading week. According to the latest Commitments of Traders report by the US regulatory authority Commodity Futures Trading Commission, the general interest in gold futures also went down. In the week ending May 5, the number of open contracts (open interest) fell from 500,800 contracts to 493,200 contracts (-2.1 percent). While there was growing skepticism among large futures speculators in the reporting period, small speculators (non-reportables) became more optimistic for the seventh time in a row. However, because large speculators “turned the bigger wheel”, the cumulative net long position (optimism outweighs) of large and small futures speculators decreased on balance from 293,600 to 281,600 contracts (-4.1 percent).
Inflation on the rise?
If you look at the development of the global money supply and mountains of debt, you can get quite queasy. The rescue packages launched again by central banks and governments are significantly more extensive than the previous ones. During the 2008/2009 financial crisis, much of the money ended up in the financial system and less in the real economy. Back then, the large amount of money did not cause consumer prices to rise, but rather asset price inflation.