(Kitco News) – Bearish speculative investors continue to hold the gold market in a death grip and are in complete control of the price action, according to the latest trade data from the Commodity Futures Trading Commission (CFTC).
While analysts continue to wait for the ever-elusive short squeeze to breathe new life in the yellow metal, the market’s speculative short side continues to expand hitting new historical record on a weekly basis. Net speculative short positions have increased for seven consecutive weeks.
“Speculative financial investors remain the primary factor weighing on the gold price. In the last reporting week alone, they sold 53.5 tons of gold via the futures market,” said analysts from Commerzbank. “Selling since the end of June now totals almost 260 tons – equivalent to nearly a month’s worth of global gold mining production.”
The CFTC’s disaggregated Commitments of Traders report, for the week ending Aug. 14, showed money managers decreased their speculative gross long positions in Comex gold futures by 1,046 contracts to 104,803. At the same time, short bets rose by 16,162 contracts to 188,127.
Gold’s net-short positioning currently stands at 83,324contracts, a 26% increase from the previous week. During the survey period, gold prices continued to test critical support at $1,200 an ounce.
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