Speculators Buy Gold And Metals According To Latest COT Report Update

(Forex-FX-4X 11/7/2012) - The latest COT report update, for the week ended July 3rd, shows that speculative market participants decided to buy gold and added to long positions for other precious metals;  This speculative futures trading takes place on the New York Comex division and Nymex.

The CFTC (Commodity Futures Trading Commission) report revealed the long gold position increased as Comex August gold gained and managed-money accounts increased overall gold options/futures market exposure to 108,278 net-long contracts.

The legacy report showed the key large speculator group (non-commercials) increased net-long positioning to 137,236 contracts as of the  aorementioned reporting period. Silver net-long positioning for large specs likewise increased.

A look at the latest gold chart (daily XAUUSD) shows price has seen strong downside since the 3rd July and today had the precious metal trading lower on elevated volatility.  The strong drop today could be partly attributable to the news that client funds are missing from PFGBest, the U.S. futures brokerage; this has seen investors cut positions and move to cash.  The price to buy gold had rallied earlier, to the $1600 handle, on positive news around the proposed Spanish aid package but the daily candle has subsequently closed just above the lower trend line.

Gold Daily Chart 11/7/2012