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Gold Speculators Sharply Cut Their Bullish Net Positions For 3rd Week

ByZachary Storella
Published 05/22/2017, 04:56 AM
Updated 07/09/2023, 06:31 AM

COT Gold large Speculators Vs Commercials

Gold Non-Commercial Positions:

Large speculators continued to sharply cut back on their bullish net positions in the gold futures markets for a third straight week and brought the overall level to the lowest standing in eight weeks, according to the latest Commitment of Traders (COT) data released by the Commodity Futures Trading Commission (CFTC) on Friday.

The non-commercial futures contracts of Comex gold futures, traded by large speculators and hedge funds, totaled a net position of 126,724 contracts in the data reported through May 16th. This was a weekly drop of -23,282 contracts from the previous week which had a total of 150,006 net contracts.

Speculators have now reduced their bullish positions by over -70,000 contracts in the past three weeks which followed a streak of six straight weekly gains.

Gold Commercial Positions:

The commercial traders position, categorized by the CFTC as hedgers or traders engaged in buying and selling for business purposes, totaled a net position of -142,859 contracts last week. This was a weekly gain of 21,563 contracts from the total net of -164,422 contracts reported the previous week.

Gold Futures COT large Traders Sentiment Vs GLD ETF

Gold ETF (NYSE:GLD):

Over the same weekly reporting time-frame, from Tuesday to Tuesday, the GLD ETF, which tracks the price of gold, closed at approximately $117.65 which was a rise of $1.60 from the previous close of $116.05, according to ETF financial market data.

Latest comments

GLD claims to be fully backed by physical gold bullion but yet it refuses to give your everyday investors the right to redeem for any of these ‘claimed’ gold bullion. This fact alone would mean GLD shares are nothing more than paper at the end of the day. Furthermore, GLD’s prospectus is chalk full of weasel clauses and legal loopholes that allows the fund to get away without the full physical gold backing. One good example of this is the clause that states GLD has no right to audit subcustodial gold holdings. To this day, I have not heard of a single good reason for the existence of this audit loophole.. . I remember there was a well documented visit by CNBC's Bob Pisani to GLD's gold vault. This visit was organized by GLD's management to prove the existence of GLD's gold but the gold bar held up by Mr. Pisani had the serial number ZJ6752 which did not appear on the most recent bar list at that time. It was later discovered that this "GLD" bar was actually owned by ETF Securities.
"GLD ETF". . Zach, I often see you mentioning this fund. I've been trying to do my due diligence into GLD but have been unable to find any details on its insurance. Would you happen to know any specifics on this subject? The following has been my experience: . . "Did anyone try calling the GLD hotline at (866) 320 4053 in search of numerical details on GLD's insurance? The prospectus vaguely states "The Custodian maintains insurance with regard to its business on such terms and conditions as it considers appropriate which does not cover the full amount of gold held in custody." When I asked about how much of the gold was insured, the representative proceeded to act as if he didn't know and said they were just the "marketing agent" for GLD. What kind of marketing agent would not know such basic information about a product they are marketing? It seems like they are deliberately hiding information from investors."
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