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Speculator Activity Shows Funds Selling Gold And Silver

[heading]Speculator Activity Shows Funds Selling Gold And Silver[/heading]

Speculator activity in the recent Commodity Futures Trading Commission showed that funds were selling gold and silver, while adding to their platinum group metals accounts in future and option on the Comex division of the New York Mercantile Exchange and the Nymex.

This might show investors’ tendency to believe that 2014 will be a year of neutral economic news and quantitative easing.

In the week ended November 5, speculators in the CFTC’s weekly commitment of traders report shown a more bearish outlook on gold and silver.  The funds have been building their net-long positions in the platinum group metals.

Alex Thorndike, senior trader, precious metals and foreign exchange, MKS Capital Pty Ltd, said this was the largest increase in funds’ short gold contracts in four weeks. “The net position in gold slid 13% for managed money and short bets jumped 37%,” he said.

Non-commercials have decreased their net-long position, cutting 6,120 gross gold longs and adding 6,197 gross shorts. They are net-long 116, 259 contracts, while commercials are net-short. They have trimmed this position, however, adding gross longs and cutting gross shorts.

“Specs added short gold exposure, while cutting long positioning, as they bet the FOMC (Federal Open Market Committee) was determined to taper as soon as the economy allowed — December taper probabilities increased slightly,” stated TD Securities.

Silver’s net-long position for managed-money accounts fell to 18, 369 contracts, with the drop coming from the cutting of 1,468 gross longs and adding 137 gross shorts.

Producers are net-short and saw a small rise in that position when few more gross longs were cut than gross shorts. Swap dealers are net-long and have added to that position by adding more longs and cutting gross shorts.

Non-commercials reduced silver exposure on both sides in the legacy report. They cut 587 gross longs and 44 gross shorts, lowering their net-long to 24,075 contracts. Commercials are net-short, but reduced that position by cutting the gross shorts and adding some gross longs.

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