Gold: traders broke through the sideways net position

The Commodity Futures Trading Commission (CFTC) COT (Commitments of Traders) reports for the week ending on Tuesday last week showed:

Non-commercial large speculators increased their net buying position in gold for the third consecutive week, bringing it up to 193.3 thousand contracts - the highest it has been since May 9th. This represents a 27.6 thousand contract increase from the previous week.

Hedger operators have been steadily increasing their net sell position on gold contracts for the past three weeks, with the latest figure reaching 213.7k contracts, a 26k increase from the previous week.

The number of open contracts decreased by 1.1 thousand, bringing the total to 482.1 thousand.

The ratio of the number of buy contracts to the number of sell contracts for the bullish index of large speculators increased by 0.53 over the week, bringing it to 3.75.

The data from the Commitment of Traders (COT) report for gold has shown a significant increase in bullish sentiment. Over the past week, traders have been actively increasing their net position in anticipation of rising prices. This has brought the net position to levels not seen since early May, which was the highest in the past 14 months. Large funds have increased their purchases by 10%, while sales have been reduced. If this trend continues, it could lead to an increase 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 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.