Speculators Continue Long Exodus in Gold, Copper-CFTC-Shanghai Metals Market

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Speculators Continue Long Exodus in Gold, Copper-CFTC

Industry News 09:37:57AM May 21, 2012 Source:SMM

May 18 (Reuters) - Money managers slashed their net long positions in gold futures and options further to fresh multiyear lows in the week of May 15 when prices fell to critical levels, data from the Commodity Futures Trading Commission (CFTC) showed on Friday. 

The exodus, also seen to a lesser extent in copper and silver, reflects weakening confidence in commodities markets and mounting concerns about the euro-zone debt crisis that knocked the euro to four-month lows against the dollar on Friday. 

Hedge funds and other speculators unwound their bullish bet in gold, cutting net length by 13,879 contracts to 78,619, building on last week's even more vigorous cut, as bullion prices lost almost $100 to around $1,540 an ounce. 

This is the smallest net long position for funds since December 2008, when speculators were bailing out of all financial markets at the height of the global economic crisis. It is all the more significant as some funds take a long-only stance in gold.
 
Most of the net reduction was due to a rise in short positions, with 10,677 added, while 3,202 longs were taken out in the week.  

On Wednesday, spot gold hit a four-month low of $1,527 an ounce, close to critical technical support levels, triggering a spate of short covering. That technical buying sent prices up over $60 during the next two days. 

There was a dramatic cut in copper longs, too, mostly due to a build in short positions, as investors bet on lower prices on fears about lower demand from Europe and China, the world's largest consumer of the red metal. 
    
Net length fell by 10,623 to 4,833 contracts. That is the largest drop since early April. Comex copper prices fell over 7 percent in the week to May 15.
 
Speculators have not been short copper since the end of January.   

They also reduced their silver net long positions for a sixth consecutive week, albeit at a much small rate than previous periods. The net reduction was 466 contracts to 6,693 contracts.     
FUTURES + OPTS    Managed             Swaps          Producer       
                       Net     Chg       Net     Chg       Net     Chg
 Gold               78,619 -13,879    -6,161   14214  -124,791   6,029
 Silver              6,693    -466    14,896    2438   -32,626     263
 Copper              4,833 -10,623    44,372    2119   -29,789   5,250
 
                     Other         NonReport              Open       
                       Net     Chg       Net     Chg  Interest     Chg
 Gold               25,205  -3,276    27,128  -3,089   699,370  31,753
 Silver              5,994  -1,342     5,044    -892   156,119   5,882
 Copper             -8,691   3,234   -10,725      20   148,020   3,368
 =====================================================================
 
 
 FUTURES ONLY      Managed             Swaps          Producer       
                       Net     Chg       Net     Chg       Net     Chg
 Gold               80,098 -10,274    -8,328   9,430  -130,589   3,108
 Silver              5,703    -200    15,450   1,396   -31,358     595
 Copper              4,833 -10,623    44,372   2,119   -29,747   5,265
 
                     Other         NonReport              Open       
                       Net     Chg       Net     Chg  Interest     Chg
 Gold               34,044   1,113    24,775   -3377   422,091   4,293
 Silver              5,771    -889     4,434    -902   114,208     659
 Copper             -8,691   3,234   -10,767       5   147,934   3,351
 =====================================================================
                                                                          
                        FUTURES + OPTS         FUTURES ONLY
 Gold                                                     
 Silver                                                   
 Copper                                                   

 

Speculators Continue Long Exodus in Gold, Copper-CFTC

Industry News 09:37:57AM May 21, 2012 Source:SMM

May 18 (Reuters) - Money managers slashed their net long positions in gold futures and options further to fresh multiyear lows in the week of May 15 when prices fell to critical levels, data from the Commodity Futures Trading Commission (CFTC) showed on Friday. 

The exodus, also seen to a lesser extent in copper and silver, reflects weakening confidence in commodities markets and mounting concerns about the euro-zone debt crisis that knocked the euro to four-month lows against the dollar on Friday. 

Hedge funds and other speculators unwound their bullish bet in gold, cutting net length by 13,879 contracts to 78,619, building on last week's even more vigorous cut, as bullion prices lost almost $100 to around $1,540 an ounce. 

This is the smallest net long position for funds since December 2008, when speculators were bailing out of all financial markets at the height of the global economic crisis. It is all the more significant as some funds take a long-only stance in gold.
 
Most of the net reduction was due to a rise in short positions, with 10,677 added, while 3,202 longs were taken out in the week.  

On Wednesday, spot gold hit a four-month low of $1,527 an ounce, close to critical technical support levels, triggering a spate of short covering. That technical buying sent prices up over $60 during the next two days. 

There was a dramatic cut in copper longs, too, mostly due to a build in short positions, as investors bet on lower prices on fears about lower demand from Europe and China, the world's largest consumer of the red metal. 
    
Net length fell by 10,623 to 4,833 contracts. That is the largest drop since early April. Comex copper prices fell over 7 percent in the week to May 15.
 
Speculators have not been short copper since the end of January.   

They also reduced their silver net long positions for a sixth consecutive week, albeit at a much small rate than previous periods. The net reduction was 466 contracts to 6,693 contracts.     
FUTURES + OPTS    Managed             Swaps          Producer       
                       Net     Chg       Net     Chg       Net     Chg
 Gold               78,619 -13,879    -6,161   14214  -124,791   6,029
 Silver              6,693    -466    14,896    2438   -32,626     263
 Copper              4,833 -10,623    44,372    2119   -29,789   5,250
 
                     Other         NonReport              Open       
                       Net     Chg       Net     Chg  Interest     Chg
 Gold               25,205  -3,276    27,128  -3,089   699,370  31,753
 Silver              5,994  -1,342     5,044    -892   156,119   5,882
 Copper             -8,691   3,234   -10,725      20   148,020   3,368
 =====================================================================
 
 
 FUTURES ONLY      Managed             Swaps          Producer       
                       Net     Chg       Net     Chg       Net     Chg
 Gold               80,098 -10,274    -8,328   9,430  -130,589   3,108
 Silver              5,703    -200    15,450   1,396   -31,358     595
 Copper              4,833 -10,623    44,372   2,119   -29,747   5,265
 
                     Other         NonReport              Open       
                       Net     Chg       Net     Chg  Interest     Chg
 Gold               34,044   1,113    24,775   -3377   422,091   4,293
 Silver              5,771    -889     4,434    -902   114,208     659
 Copper             -8,691   3,234   -10,767       5   147,934   3,351
 =====================================================================
                                                                          
                        FUTURES + OPTS         FUTURES ONLY
 Gold                                                     
 Silver                                                   
 Copper