US futures traders pounce on physical gold

Gold price rose

The gold price rose slightly again last week. There was also an increase in trading activity on the US commodity futures exchange COMEX. Let’s look at the CoT data with the positions of the largest trader groups in the gold futures business as of June 23, 2020.CoT dataThe net short position of the “Commercials” rose by 11 percent compared to the previous week to 287,292 contracts. On the other hand, the net long position of the “big speculators” rose by 12 percent to 251,957 contracts. The optimism of this group of traders was again driven by “managed money” (hedge funds, investment companies), which increased their net purchases by 23 percent to 129,515 contracts.


Gold market is booming

Open interest, the sum of all open gold contracts on COMEX, rose by 8.69 percent to 532,101 contracts compared to the previous week. In the weekly CoT data, this is the highest value since March 24, 2020. By the close of trading on Friday, there was a further increase of 2.6 percent to 546,018 contracts.Higher stocksAs of June 25, 2020, the physical gold stocks in the COMEX stores totaled 31.71 million ounces (previous week: 30.98 million ounces). Of this, 18.97 million ounces (previous week: 18.44 million ounces) were in the “eligible” category, which are stored for immediate delivery to dealers. For comparison: 54,601,800 ounces of gold in the form of futures were traded on the COMEX at the current open interest.