SMM Network News: after the recent low volatility of the gold market, the market bullish bets on gold also continued to decline.
CFTC's latest report shows that net long positions in COMEX gold futures fell to their lowest level in about 15 months in the week ended Sept. 22.
Specific data show that the weekly COMEX gold long position decreased by 21901 to 144670 hands compared with the previous week, while the short position increased by 7749 to 63222 hands.
Net long positions in COMEX gold fell to 81448 positions, down 27% from the previous week.
Gold prices were extremely weak during the week, with spot gold prices hitting a two-month low, falling below the support level of $1850 an ounce at one point.
But despite the marked sell-off in the gold market, many analysts believe it was these weaker bulls that laid the groundwork for a subsequent rally.
Investors sold heavily because long positions were still high and gold prices were lower, TD Securities (TD Securities) said in a report.
"but it is important to note that short positions have increased, indicating some healthy scepticism in the gold market."
Ole Hansen, head of commodities strategy at (Saxo Bank) at Saxo Bank, said that although gold prices had fallen below the $1900 / oz mark, some key levels had been maintained.
However, Hansen said it did not rule out a further fall in gold prices, especially as the dollar still performed well.
The short-term technical and fundamental outlook for gold is challenged and can continue to rise only after interest rates and the dollar stabilize. However, gold prices maintained the key support level of $1837 per ounce, which is the 38.2 per cent pullback level of the March-August rally. "
The latest (Scotia Bank) report of Fengye Bank believes that the recent weak performance of gold is due to market sentiment rather than reality, and short-term fluctuations in gold prices are not important.
"the recent selling pressure in the gold market reflects the market's perception of reality, not the risk from the foreign exchange market, which is driving the rise of the dollar."
The bank said that the fundamentals of the gold market in the medium term are still relatively good, especially the Fed's attitude towards higher inflation, which will put pressure on real interest rates.
In that week, long positions in COMEX silver decreased by 1700 to 61547 hands, while short positions increased by 1070 to 25052 hands, while net long positions fell to 36495 hands, down 7 per cent from the previous month. The price of silver fell nearly 15% over the same period.
