Weekly CoT Update: Speculators Buy Gold at Record Pace, Sell More Euros

CoT Highlights:

  • Gold futures bought at one-week record pace
  • Euro large specs shortest since March 2017
  • Large spec profiles for major FX and markets

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

The most recently released CoT report showed aggressive short-covering in gold, with a record one-week amount of contracts bought. Euro large speculators continue to hit the bid on the single-currency, pushing their net-short to a 17-month extreme.

On Fridays 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.), excluding small speculators and commercial traders.

‘Large specs’ are known to typically employ trend-following strategies, and as such, they tend to add to long positions and reduce shorts in uptrends while reducing long positions and increasing shorts 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, and where the current position stands

Article source: https://www.dailyfx.com/forex/technical/article/cot/2018/10/22/Weekly-CoT-Update-Speculators-Buy-Gold-at-Record-Pace-Sell-More-Euros-PRtech.html