Gold: the bulls are waking up, but the bears are strong

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

After a weekly decrease, large speculators (NON-COMMERCIAL) increased their net buying position in gold by 2.8 thousand contracts, bringing it up to 163 thousand. This is the first time the net position has grown from its minimum level since March 21.

After a weekly decline, hedger operators (COMMERCIAL) increased their net sell position in gold by 0.5k contracts to 186.5k.

The number of open contracts rose by 5.1 thousand, bringing the total to 438 thousand.

The ratio of the number of buy contracts to the number of sell contracts for the bullish index of large speculators increased by 0.07 to 3.46 over the course of the week.

The COT data for gold has shown an uptrend in bullish sentiment. After a week-long decrease, traders have increased their net position in anticipation of rising prices. This increase in net position has come from levels that were minimal over the past three months. Large funds have increased their buying by 1% for the week, while selling has also been reduced. If this trend continues, it could lead to an increase in the price of the precious metal.

The net position has remained relatively unchanged over the past 4 weeks, suggesting a degree of market uncertainty.

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 influence 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.