Speculators Return to Buying Gold, Silver
Source: Kitco, Debbie Carlson (12/6/10)
"Speculators increased gross longs and cut gross shorts."
In both legacy and disaggregated weekly commitment of traders reports issued by the Commodity Futures Trading Commission the speculative non-commercial and managed-money accounts halted slides in net-long positions witnessed earlier in November. The most recent data is for the trade date ended Nov. 30. The data encompasses both the futures and options activity at the Comex division of the New York Mercantile Exchange.
A rise in prices for gold and silver encouraged funds to add to net-longs. During the timeframe measured, Nov. 24 to Nov. 30, most-active February gold rose $11.10 an ounce and settled at $1,386.10 on Nov. 30. Silver gained $0.609 an ounce and settled at $28.212 on Nov. 30.
The fund net-length could increase again when the CFTC releases its data Friday as both markets saw prices advance from the Tuesday settlements.
Concerns about the solvency of certain European states helped lift precious metals during the time, analysts said.
Managed-money accounts returned to adding to their net-long gold positions, which stand at 182,716. They added 1,544 gross longs and cut 3,903 gross shorts. CFTC data show these speculative accounts are nearly completely long, as the total gross short position is 9,998 contracts.
The producer category again saw trimmed positions in gold on both sides, and it remained net-short. Swap dealers cut longs and added to shorts, increasing their net-short position.
In the legacy report, speculators, known as non-commercials, increased gross longs and cut gross shorts, pushing up their net-long position to 244,799 contracts. Commercial traders cut gross longs and increased gross shorts, leaving them with a bigger net-short position.