Gold Longs to Near All-Time Highs - TDS
Research Team at TDS, lists down the CFTC Commitment of Traders Report for the Week Ending April 12th, 2016.
Key Quotes
“Gold
specs have used a lot of firepower once again and boosted their longs
to near all-time highs at 306K lots, which suggests prices will have an
even tougher time finding additional upside. Decreased market volatility
and improving Chinese data suggesting a more hawkish path for the Fed
makes this especially likely.
Silver specs saw a further jump
into record territory at ~87K lots, but upside price gains have also
failed to materialize. Any movement by the Fed away from lower for
longer will spook heavily overextended specs into cutting these outsized
bets quite sharply.
Concern that US auto sales may continue to
remain under pressure following recent US durable goods weakness and
lackluster China automotive demand prompted money managers to sharply
cut their net long palladium positions by a large 11.5% of open
interest. Specs aggressively grew short positioning amid expectations
that prices may migrate materially lower in response to possible pending
auto catalyst weakness.
Fear that somewhat better-than-expected
Chinese economic numbers would remove the impetus for the PBoC to
increase monetary accommodation and down trending prices convinced money
managers to reduce net long copper exposure by a very robust 5.9% of
open interest. Specs grew short positioning as they attempted to protect
against a sharp price drop in the previous week.”
