Hedge funds are reluctant to commit to gold, but silver is gaining new momentum as industrial demand rises, according to some analysts citing the latest trading data from the Commodity Futures Trading Commission. Analisdollarser says that the gold market has attracted sluggish interest as investors focus on the Federal Reserve’s tightening of monetary policy. Cryptocoin. com
As , we have prepared for you the important data in the CFTC’s Trader Commitment Series report, which is disaggregated for the week ending October 19, accompanied by analisdollarserin evaluations.
“Investors remain cautious about gold as they focus on Fed exit”
The disaggregated report showed that money-administered speculative gross long positions in Comex gold futures fell 7,108 contracts to 124,560. At the same time, short positions fell by 6,388 contracts to 66,761. Gold’s net position stands at 57,799 contracts, relatively unchanged from the past three weeks. During the survey period, gold prices managed to hold support above $1,750. However, fiyadollarsar failed to break above the $1,800 resistance.
Analisdollarser says that the gold market has attracted sluggish attention as investors focus on tightening the Federal Reserve’s monetary policy. That said, the US central bank is expected to cut monthly bond purchases before the end of the year and raise interest rates until 2022, the report said. But some analystsdollarser point out that rising inflation will keep real interest rates close to historically low levels, even if the Federal Reserve raises interest rates. TD Securities analystsdollarseries note that market prospects for US monetary policy look a little too hawkish and may support gold:
While gold has historically outperformed most asset classes in times of high inflation, the yellow metal has remained cautious as investors focus heavily on the Fed’s exit. In fact, speculators have only marginally added to their positions in this context, with modest short closing as prices rise, despite the strong movement in inflation expectations. We think the market price hype for the Fed’s hikes has become too hawkish, as it doesn’t take into account that the Fed’s tools are unlikely to be used to combat inflation linked to continued supply chain prices.
Investors turned to silver and copper in search of inflation hedge, according to analystsdollars
Analisdollarser states that fears of rising inflation revive interest in base metals, while depleted stocks create a significant supply/demand imbalance as demand increases. Copper and silver have both seen an increase in bull interest as investors seek hedging from inflation, analystsdollars said. Analisdollarser states that inflation fears are at their highest level in the last 16 years, showing the five-year breakeven rates. The breakeven rate refers to the interest rate difference between the bonds and the Treasury Inflation-Protected Securities (TIPS). As of Friday, the five-year breakeven ratio was 2.91, close to the highest level since 2005.
The disaggregated report showed that money managers increased their speculative gross long positions on Comex silver futures to 50,040 with 2,593 contracts. At the same time, short positions fell by 11,788 contracts to 30,603. The net position of silver currently stands at 19,437 contracts. Ole Hansen, head of commodity strategy at Saxo Bank, notes that silver’s net position has more than tripled from the previous week. During the survey period, silver rallied to a nearly six-week high above $24. Analisdollarser expects hedge funds to be added to their bullish bets as fiadollarsars rise above $24.50.