Morning Gold/Silver Market Report The slide to multi-year lows last week probably results in some negative headline flow early this week, especially if the Dollar continues to rise and the outlook for the global economy is anemic. In other words, while the futures spec long is probably being brought down aggressively, it could take even more declines and signs of distinct bargain hunting buying to alter the downward bias. The bear camp was probably cheered by weekend reports of a sharp decline in Chinese gold demand for the month of September. In fact, Chinese demand not only declined for gold bars (typically investors) it also declined for jewelry. With the added burden of slackening Indian gold demand in the wake of the passing of the Indian festival season, the bear camp overall demand vibes are bearish. To even begin to see bargain-hunting buying probably requires a positive fundamental headline theme which doesnt seem apparent at this time! The hope for more Chinese and ECB easing is somewhat supportive, but unfortunately that news comes because of slack data from China and fresh wrangling in the Ukraine and that keeps the Euro weak and global growth views in question. While the last COT positioning report obviously overstates the current spec and fund long in gold at 102,000 contracts, the sharp slide last week might not be the end of the long liquidation. The Commitments of Traders Futures and Options report as of October 28th for Gold showed Non-Commercial traders were net long 104,521 contracts, a decrease of 6,758 contracts. The Commercial traders were net short 102,072 contracts, a decrease of 5,338 contracts. The Non-reportable traders were net short 2,449 contracts, a decrease of 1,419 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 102,072 contracts. This represents a decrease of 5,339 contracts in the net long position held by these traders. The Commitments of Traders Futures and Options report as of October 28th for Silver showed Non-Commercial traders were net short 98 contracts, an increase of 1,503 contracts which represents a change from a net long to net short position. The Commercial traders were net short 9,222 contracts, a decrease of 1,194 contracts. The Non-reportable traders were net long 9,319 contracts, an increase of 308 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 9,221 contracts. This represents a decrease of 1,195 contracts in the net long position held by these traders.
Posted on: Mon, 03 Nov 2014 13:24:05 +0000
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