Gold: speculators have broken through the “ceiling” of the current year

The Commodity Futures Trading Commission (CFTC) reported, for the week ending last Tuesday, that the Commitments of Traders (COT) reports showed.

Non-commercial large speculators increased their net position to purchase gold contracts by 28.4 thousand contracts, bringing the total to 200.1 thousand. This marks the second consecutive week of increases in the net position, and 6 out of the last 7 weeks. The net position has now surpassed the current year's levels and is the highest it has been since April 26, 2022.

Hedger operators have been increasing their net position for selling gold contracts for 6 weeks out of the last 7, with the net position reaching its highest level since May 9 - 28.4 thousand contracts higher than the previous week, at 218.6 thousand.

The number of open contracts decreased by 2.8 thousand, bringing the total to 505.7 thousand.

The ratio of the number of contracts to buy to the number of contracts to sell for the bullish index of large speculators rose 0.48 points to 3.23 over the course of the week.

The latest Gold COT report indicates a strong bullish sentiment. Over the past week, traders have increased their net position on rising prices, with the net position of large speculators reaching its highest level in 19 months. Large funds increased their purchases by 7.5%, while sales were also reduced. This trend could potentially lead to an increase in gold prices in the near future.

COT reporting data is essential for medium to long term trading. Large speculators, NON-COMMERCIAL (banks, investment funds) usually follow the trend (blue line). Small speculators, NONREPORTABLE POSITIONS, generally do not have much impact 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. Open interest is the total of all open positions in the market.