Gold: growth completed?

The CFTC's COT report for the week ending last Tuesday showed that, according to the Commodity Futures Trading Commission, traders had commitments.

Non-commercial large speculators decreased their net buy position in gold by 8.7k contracts, bringing it down to 164.9k. This marks the second week of decline after a 3-week period of growth. The net position has been decreasing since it reached its peak on May 9th.

Hedgers (COMMERCIAL) decreased their net sell position on gold contracts by 11.4k contracts to 186.8k. This marks the second consecutive week that hedger operators have reduced their net sell position.

The number of open contracts decreased by 36.8 thousand, bringing the total to 439.4 thousand.

The ratio of the number of buy contracts to the number of sell contracts for the bullish index of large speculators decreased by 0.10 over the week, bringing it to 3.23.

For the second week in a row, traders are reducing their net position on gold price growth from the highs of the last 2.5 months, close to the highs of 15 months. This is reflected in the latest Commitment of Traders (COT) data, which shows that the net position has dropped to its lowest level in the last month. Large funds have decreased their purchases by 4% for the week. If this trend continues, it could lead to a decrease in the price of the precious metal.

COT report data is essential for medium and long-term trading, and is mainly used by large speculators, NON-COMMERCIAL (banks, investment funds). These traders usually follow the trend (blue line). Small speculators, NONREPORTABLE POSITIONS, however, have little effect on the market (red line). Hedgers, COMMERCIAL (operators, large companies) usually go against the trend (black line). The net position is the difference between the number of buy and sell contracts, while open interest is the total of all open positions in the market.