Investing.com - Gold futures started the week in strong form during Monday’s Asian session although data indicate market participants have pared their long exposure to the yellow metal.
On the Comex division of the New York Mercantile Exchange, gold futures for September delivery climbed 1.32% to USD1,329.80 per ounce in Asian trading Monday. The September contract settled up 0.18% at USD1,312.50 per ounce last Friday.
Last week, gold futures notched a 0.2% weekly, good for the second consecutive weekly advance. Gold futures were likely to find support at USD1,272.10 a troy ounce, the low from August 7 and a three-week low and resistance at USD1,319.85, the high from August 5.
Data from the U.S. Commodity Futures Trading Commission show hedge funds, money managers and other professional investors pared their long exposure to gold by 27% to 48,103 options and futures contracts for the week ending August 6.
Short exposure to gold was increased by 26% as net long exposure to 18 commodities was reduced 19%, according to the CFTC data. After 12 consecutive annual gains, gold futures have plunged 22% as speculation has increased the Federal Reserve is close to tapering its USD85 billion per month bond-buying program.
Last week, comments by senior Fed officials, including the heads of the Federal Reserve Banks of Chicago and Dallas, indicated that the U.S. central bank could begin to scale back its asset purchase program as early as next month if the economy continues to pick up.
An exit from the stimulus would deal a heavy blow to gold, which has thrived on demand from investors who buy gold to hedge against the inflationary risks of loose monetary policies.
Elsewhere, Comex silver for September delivery surged 2.2% to USD20.855 per ounce while copper for September delivery fell 0.26% to USD3.301 per ounce.
On the Comex division of the New York Mercantile Exchange, gold futures for September delivery climbed 1.32% to USD1,329.80 per ounce in Asian trading Monday. The September contract settled up 0.18% at USD1,312.50 per ounce last Friday.
Last week, gold futures notched a 0.2% weekly, good for the second consecutive weekly advance. Gold futures were likely to find support at USD1,272.10 a troy ounce, the low from August 7 and a three-week low and resistance at USD1,319.85, the high from August 5.
Data from the U.S. Commodity Futures Trading Commission show hedge funds, money managers and other professional investors pared their long exposure to gold by 27% to 48,103 options and futures contracts for the week ending August 6.
Short exposure to gold was increased by 26% as net long exposure to 18 commodities was reduced 19%, according to the CFTC data. After 12 consecutive annual gains, gold futures have plunged 22% as speculation has increased the Federal Reserve is close to tapering its USD85 billion per month bond-buying program.
Last week, comments by senior Fed officials, including the heads of the Federal Reserve Banks of Chicago and Dallas, indicated that the U.S. central bank could begin to scale back its asset purchase program as early as next month if the economy continues to pick up.
An exit from the stimulus would deal a heavy blow to gold, which has thrived on demand from investors who buy gold to hedge against the inflationary risks of loose monetary policies.
Elsewhere, Comex silver for September delivery surged 2.2% to USD20.855 per ounce while copper for September delivery fell 0.26% to USD3.301 per ounce.