Hedge funds raised bearish bets on the gold market because the price failed to rise above $ 1,800 and as a result disappointed many investors.
Hedge funds increased bearish bets in the gold market!
Analisdollarser points out that gold investors have recorded losses since the beginning of the year. Speculative momentum in copper and palladium in particular pushed prices yellow to new all-time highs above $ 4.50 / pound and $ 3,000 / ONS respectively. Many analysts said speculative capital will flow where momentum is, while gold continues to position itself as an attractive long-term asset against rising inflation.
“Gold is seeing a lot of competition, but now is not the time to throw a towel for gold,” Bob Haberkorn, senior commodity broker for RJO Futures, said in a recent interview with Kitco News. According to Bob Haberkorn, gold is currently struggling, but at some point he will spend his day in the sun. The CFTC report for the week ending April 27 shows that money managers have increased their speculative gross long positions in Comex gold futures to 117,144 with only 301 contracts. At the same time, short positions increased to 66.493 if they were contradollars of 6.774.
Many analysts say a $ 1,800 break is inevitable
Gold’s net long positions are now at 50,651, down 10% compared to the previous week. During the survey period, gold prices retested resistance just under $ 1,800 before being hit by selling pressure. Despite the growing frustration in the gold market, many analysts say a breakout of $ 1,800 is inevitable as inflation pressure continues to build, keeping real interest rates at historically low levels. Commenting on the serial markets, TD Securities analysts said:
While the institutional outflows continue to put pressure on the yellow metal, the FED’s commitment to “Average Inflation Targeting” may argue for a period when the policy remains zero but exceeds inflation, as nominal rates gradually reduce the impact of individual reflation trade. This advocates a more supportive context for investment flows on the horizon. While hedge funds are not satisfied with the series of price action in the gold market, they are increasing their bullish bets on silver.
Silver’s net longs are currently at their highest level since the end of February
The CFTC report showed that speculative gross long positions managed by money in Comex silver futures increased by 2.790 contracts to 64.769. At the same time, short positions increased by only 221 contracts to 28.213. Silver’s net long positions are now at 36,556 contracts, up 7.5% from the previous week. Silver’s net longs are currently at their highest level since the end of February.
During the survey period, silver prices managed to hold critical support above $ 26 yellow. While the gold-silver ratio remains at the lowest level in a month, silver continues to outperform gold as the last transaction is at 66.68 points. Ole Hansen, head of commodity strategy at Saxo Bank, said the silver prices rose as improved global conditions continued to support industrial demand for precious metals.