The latest data from the Commodity Futures Trading Commission shows that money managers are reluctant to make significant bets on an increase.
In the CFTC's disaggregated report on traders' obligations for the week ending August 9, financial managers increased their speculative long positions on gold futures on the Comex by 3,379 contracts, to 100,013. At the same time, short positions decreased by 21,500 contracts to 59,279.
The net length of gold was 40,734 contracts, which is twice as much as the week before last.
During that period, gold prices rose above $1,800 per ounce but failed to break through any major resistance levels.
Some analysts say the short squeeze on gold could have run its course, as everyone expects the Federal Reserve to raise interest rates by another 75 basis points in September.In a comment on Twitter, John Reade, chief market strategist at the World Gold Council, wrote that although most of the gold movement was caused by short covering, gold is again attracting attention.
Commodity analysts at Societe Generale noted that the jump in bullish positions for gold shows that investors still consider the precious metal an important safe-haven asset.But yesterday, the strengthening of the dollar led to gold falling below $1,800. Unlike last week, traders effectively bought the fall for three days.
Since the minutes of last month's FOMC meeting is due to be published on Wednesday, traders are being cautious and waiting to see if any new ideas can be extracted from the FOMC meeting minutes
Silver contracts remain net at 6,543 contracts. Silver prices rose above $20 per ounce during the survey period but failed to test resistance at $21.
The disaggregated report shows that speculative long positions on silver futures on Comex decreased to 32,469 contracts by 558 contracts. At the same time, short positions decreased by 2,871 contracts to 39,012.
Although silver prices have outpaced gold in recent weeks, many analysts are still bearish about this precious metal. Analysts note that a potential global recession could weaken industrial demand for silver.
Fears of a recession can be seen in speculative positions on other base metals, especially copper, which failed to attract significant bullish attention.
The Copper Company's disaggregated report shows that speculative long positions on Comex futures for high-quality copper decreased by 950 contracts to 37,345. At the same time, short positions increased by 718 contracts to 57,179. Positioning in the copper market remains firmly bearish with a new net short position of 19,834 contracts. Analysts say that sentiment has not changed, as prices are trading around $3.62 per ounce.
