According to the current Commitments of Traders Report from the US supervisory authority CFTC, speculative market players on the futures markets continue to bet on a rising gold price.
by Jörg Bernhard
In addition, in the week ending October 31, the number of open contracts (open interest) increased from 462,500 to 475,800 futures (+2.9 percent), signaling growing interest in gold futures for the fourth time in a row. Because large futures speculators (non-commercials) increased their long exposure by 9,600 contracts and at the same time reduced their short exposure by 4,500 futures, their net long position (optimistic market expectations) increased from 149,400 to 163,400 contracts (+ 9.4 percent). Growing optimism was also evident among small speculators (non-reportables). Your net long position increased from 16,500 to 19,300 futures (+17.0 percent) in the reporting period. Despite the buying mood that has been observed for weeks, there is still considerable catch-up potential on the futures markets compared to the optimism registered at the beginning of May.
On Monday morning, the price of gold fell. By 7 a.m. (CET), the most actively traded gold futures (December) had fallen by $8.20 to $1,991.00 per troy ounce.
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Crude oil: Positive signs at the start of the week
The announcement by Saudi Arabia and Russia that the voluntary cuts in production volumes would be maintained until the end of the year helped the fossil fuel to move somewhat higher. In addition, tougher US sanctions against Iran are currently being discussed. The weekly report published on Friday evening by the US service company Baker Hughes, which operates in the oil sector, on North American drilling activities also showed a decline from 504 to 496 US oil drilling rigs and thus an impending decline in production in the USA. Market players are now eagerly awaiting the announcement of the Chinese trade balance, which is scheduled for tomorrow, Tuesday; after all, the Chinese represent the lion’s share of global demand growth.
On Monday morning, the oil price was higher. By around 7:00 a.m. (CET), the next due date WTI future rose by 0.42 to $80.93, while its Brent counterpart rose by 0.35 to $85.24.
Editorial team finanzen.net
Image sources: Worldpics / Shutterstock.com, Lisa S. / Shutterstock