Gold: New records in US futures trading

Gold is in high demand. More futures contracts have been concluded on the US futures market than ever before. The net positions of the largest groups of traders also rose to a new record high in the recent gold price rally.

 

Gold Rally

The recent increase in gold prices was accompanied by new record values ​​in trading in gold futures on the COMEX US futures exchange. The weekly CoT report data has never seen such a large number of current contracts. The positions of the largest dealer groups have risen significantly. Here are the current figures as of December 31, 2019.

 

Record positions

The net short position of “Commercials” rose 7 percent compared to the previous week to a record 366,491 contracts. Net sales in the sub-group of swap dealers (including major banks) increased by more than 8 percent to 220,384 contracts. These traders, traditionally positioned on the short side, had sales orders of over 685 tons of gold on their books. This is the highest value since the CFTC supervisory authority published the weekly CoT data in this broken down form. On the other hand, an all-time high was also reached. The net long position of the “large speculators” increased by 7 percent compared to the previous week to 327,491 contracts.

 

Record trading

The open interest mentioned at the beginning, i.e. the sum of all open gold contracts on COMEX, rose by 5 percent in the previous week’s comparison to 786,166 contracts. By the close of trading on Monday, the percentage had risen another 794,151 contracts. This means that there were 2,469 tons of gold in circulation at COMEX.

 

Gold price strong

Gold prices have risen 3.2 percent since the beginning of the year to $ 1,568 an ounce in yesterday’s futures trading. Basis: COMEX futures, mostly traded (February) contract. Overall, the price development is subject to enormous market strength, in which a lot of new futures contracts were concluded with the rising gold price. At the same time, the interest of short-sellers with strong capital in lower prices is increasing. And: Experience shows that what goes up strongly also falls down again at some point. Overall, the gold market is fundamentally and technically very bullish.