CFTC Commitments of Traders – Gold Price Pressured on Hopes of Rising Yields

According to the CFTC Commitments of Traders report for the week ended September 7, Trades on crude oil futures fell on both sides. Speculative long position declined -9 065 contracts, while shorts dropped -1 695 contracts, sending NET LENGTH lower (down -7 370 contracts) to 349 158 contracts for the week. For refined oil products, NET LENGTH for heating oil slipped -924 contracts to 37 659, while that for gasoline decreased -2 363 contracts to 39 858. NET SHORT of natural gas futures sank -24 717 contracts to 119 978 during the week.

Gold futures’ NET LENGTH plunged -10 511 contracts to 206 039. Gold price tumbled after the ECB announced moderate asset purchases and upgraded growth and inflation forecasts. While ECB’s plan is different from Fed’s tapering, the trend of lowering asset purchases has sent yield higher. Silver futures’ NET LENGTH rose +6 225 contracts to 28 556. For PGMs, NET LENGTH of Nymex platinum futures dropped -1 708 contracts to 6 349, while NET SHORT for palladium futures added +154 contracts of 355.