Gold price rise: The air is getting a little thinner

At the US commodity futures exchange COMEX, the number of futures contracts on gold has risen sharply again. The net positions of the large dealer groups continued to remain at a high level. In terms of gold price increase, the air could temporarily be slightly thinner.

Gold price

The price of gold remained above $ 1,500 an ounce last week. And the US gold market once again saw strong gains in gold futures. Although the net positions of the largest dealer groups on the commodity futures exchange COMEX have hardly changed, the overall positions have risen sharply. This is shown by the current CoT data of the US supervisory authority CFTC as of 27 August 2019.

High net positions

In detail: The net short position of the “Commercials” increased by 0.73 percent to 333,806 contracts compared to last week. The net long position of the “big speculators” rose by 1 percent to 296,838 contracts. As a result, net positions are still at a high level, but they are showing only very slight changes for the past three weeks.

Open interest at 3-year high

By contrast, open interest, the sum of all open-ended gold contracts on COMEX, reached its highest level since July 2016 on Tuesday. With 636,183 futures contracts, the number has risen by almost 7 percent compared to last week. By the close of trading yesterday, however, it went down again by 4 percent to 610,294 contracts. The price of gold fell slightly last week by 0.4 percent to $ 1,520 an ounce.