Hedge funds will continue to sell gold rallies and maintain an overall bearish outlook on the precious metal until the US Federal Reserve provides more clarity on the pace of its tightening cycle, according to a report by KitCo.
Hedge funds will continue to sell gold rallies and maintain an overall bearish outlook on the precious metal until the US Federal Reserve provides more clarity on the pace of its tightening cycle, according to a report by KitCo.
The report cites ‘analysts’ as noting that hedge funds currently have low expectations that the Federal Reserve is planning on slowing its aggressive monetary policy stance, with the latest trade data from the Commodity Futures Trading Commission (CFTC) revealing that bearish sentiment in the gold market now matches the four-year low seen in September.
According to the CFTC’s disaggregated Commitments of Traders report for the week ending 25 Oct, managers lowered their speculative gross long positions in Comex gold futures by 1,328 contracts to 72,016, while short positions rose by 11,762 contracts to 110,804.
Gold’s net short positioning rose nearly 51% from the previous week to stand at -38,788 contracts.
