Weekly CoT Update: Speculative Selling in Gold Proving Untimely

CoT Highlights:

  • Large specs addition to gold short proving untimely
  • First test of resistance at 1235/40, then Dec ’15 t-line
  • Large spec profiles for major FX and markets

For a timelier look at sentiment in major currencies and markets, see theIG Client Sentiment page.

The most recently released CoT report showed more selling in gold by large speculators despite it stuck in a trading range, and is now proving to have been an untimely move. Otherwise this past week’s report wasn’t filled with any major shifts, just a continued theme of a generally bullish outlook for the US dollar.

Every Friday the CFTC releases a detailed report of traders’ positioning in the futures market as reported for the week ending on Tuesday. Outlined in the table below are key stats concerning the positioning of large speculators (i.e. hedge funds, CTAs, etc.). This group of traders largely employ trend-following strategies, and as such, their net long exposure typically increases in uptrends while net short positioning increases in downtrends. When analyzing the data, we take into consideration the direction of their position, magnitude of changes, as well as extremes.

Key stats: Net position, one-week change,

Article source: https://www.dailyfx.com/forex/technical/article/cot/2018/10/15/Weekly-CoT-Update-Speculative-Selling-in-Gold-Proving-Untimely-PRtech.html