Watch This Date: Look What Hedge Funds Await For Gold!

Hedge funds started liquidating their bull bets just before last week's bullish move, according to the latest data from the Commodity Futures Trading Commission (CFTC).

Watch This Date: Look What Hedge Funds Await For Gold!
Watch This Date: Look What Hedge Funds Await For Gold!
Hedge funds began liquidating their bull bets just before last week's bullish move, according to the latest data from the Commodity Futures Trading Commission (CFTC). In this environment, the gold market continues to struggle to attract solid bull interest.

“There is still no upward trend in gold prices”

The latest data continues to be in line with the sentiment in the gold market, according to some analysts. . As you follow on Coinzigzag.com, the Federal Reserve has signaled that it is preparing to slow the rate of increase. Despite this, analysts expect the final rate to remain above 5% for the foreseeable future.

Many analysts say that gold benefits from hedge funds that close their short positions. However, they note that there is still no uptrend in the precious metal. “People aren't saying let's go long on gold,” said Kevin Grady, president of Phoenix Futures and Options. They just say let's not stay short,” he explains. Grady notes that while gold has seen a decent uptick as prices climbed above $1,800, the purchases needed for a sustainable rally are lacking.

"The market is starting to grow faith"

Saxo Bank Ole Hansen, head of commodity strategy, says the mood is slowly starting to change. However, he also states that there is still a lot of work to be done. In this context, the analyst makes the following statement:

Belief is starting to grow in the market. At least investors don't want to be short anymore.

“Longs are likely to decrease again”

Certified Commitments of Traders for the week ending Nov 29 of the CFTC The report showed that money managers reduced their speculative gross long positions in Comex gold futures to 88,032 at 4,129 contracts. At the same time, short positions increased by 582 contracts to 73,312. The gold market is currently net long with 14,720 contracts. This shows that it has remained relatively unchanged from the previous week.

During the survey period, gold prices held solid support above $1,750. The poll, meanwhile, does not cover Wednesday's gold rally after Fed Chairman Jerome Powell said it would be appropriate for the central bank to slow rate hikes from December. In a note Friday, commodity analysts at TD Securities commented:

Fed Chairman Powell has convincingly signaled that he is ready to slow the pace of rate hikes from December. Also, the world believes it has seen the worst of the US rate hikes. Meanwhile, there is broad market speculation that inflation will be brought under control sooner. Given all this, gold prices have entered an upward trajectory towards $1,800. It is possible that this will re-establish the position increase next week. However, inflation is still a big problem and strong wage and employment data persists. In such an environment, long positions are likely to decline again if the Fed is not as dovish as currently expected on December 14th.