Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Investing.com sentiment: speculators turn bearish on gold

Published 12/01/2015, 05:40 AM
© Reuters.  Speculators turned bearish on gold last week according to Investing.com sentiment index

Investing.com - The Investing.com weekly sentiment index published on Tuesday revealed that speculators turned bearish on gold in the week ending November 27, as market players braced for a hike in interest rates by the Federal Reserve later this month.

According to the report, 48.4% of market participants held long positions in gold futures last week, down from 52.5% in the preceding week. A reading between 30% and 50% is bearish for the instrument.

Gold has been under pressure recently amid mounting expectations the Fed will raise rates for the first time in nearly a decade at its mid-December meeting. Expectations of higher borrowing rates going forward is considered bearish for gold, as the precious metal struggles to compete with yield-bearing assets when rates are on the rise.

Meanwhile, 29.8% of investors held long positions in EUR/USD as of last week, improving slightly from 27.5% in the preceding week. The European Central Bank is widely expected to cut its deposit rate and extend its quantitative easing program at a key meeting on Thursday.

Elsewhere, 36.5% of investors were long in GBP/USD, little changed from 36.2% a week earlier, 56.7% of market participants held long positions in USD/JPY, down from 60.8% in the preceding week, while 46.7% of investors were long USD/CHF, up modestly from 45.3% in the previous week.

Amongst the commodity-linked currencies, 53.1% were long USD/CAD, rising from 49.7% a week earlier, 31.2% held long positions in AUD/USD, compared to 21.6% in the preceding week, while 35.9% were long NZD/USD, declining from 38.6% a week earlier.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

The report also showed that 33.1% of investors were long the S&P 500, improving from 30.9% a week earlier.

A reading between 50%-70% is bullish for the instrument, a reading between 30% and 50% is bearish, a reading above 70% indicates overbought conditions and a reading below 30% indicates oversold conditions.

The Investing.com series of indexes is developed in-house. Each index measures overall exposure to major currency pairs, commodities and indexes, using data from futures exchanges and OTC providers on all long and short open positions.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.