(Kitco News) - Short covering continues to be a factor in large speculators’ rising net-long gold futures and options positions at the Comex division of the New York Mercantile Exchange, according to the latest weekly commitments of traders data from the Commodity Futures Trading Commission for the week ended March 4.
These traders also increased their bullish platinum group metals positions, and did so with new longs established and short positions trimmed. They cut bullish exposure in silver, and returned to having net-short positions in copper in both the disaggregated and legacy versions of the reports, the CFTC data show.
During the week covered by the report, April gold fell $4.80 to $1,337.90 an ounce, as of March 4. May silver fell 77.9 cents to $21.222 April platinum gained $21.50 to $1,464.10. June palladium rose $25.25 to $763.80. Comex May copper slid 1.25 cents to $3.2165 a pound.
Large speculators in the disaggregated report held their gold futures and options net-long position at the highest level since Dec. 11, 2012 for the second straight week, raising it to 118,241 contracts. These traders cut 345 gross longs and cut 4,675 gross shorts. Producers’ net-short position rose as they cut gross longs positions and added gross shorts. Meanwhile, swap dealers saw their net-short position fall slightly as they established new gross longs and cut shorts.
In the gold legacy report, non-commercials added 81 gross longs and sliced 5,943 gross shorts. They are now net-long 147,339 contracts, the highest level since Jan. 22, 2012. Commercials are net-short and lifted that position by adding more gross shorts than gross longs.
“Concerns over the Russia-Ukraine conflict have supported investor interest in gold, but the scope for additional short-covering activity is declining as gross shorts close in on pre-2013 levels,”
Alex Thorndike, senior precious metals and foreign exchange dealer at MKS (Switzerland) SA, is also cautious. “Net length on Comex now is sitting at quite elevated levels, risking some position unwinding if we break key levels to the downside,” he said.
Managed-money accounts reduced their net-long holding in silver to 23,343 contracts, by cutting 481 gross longs and adding 1,267 gross shorts. Producers raised their net-short position, but did so by cutting more gross longs than gross shorts. Swap dealers trimmed their net-short position as they increased gross longs and cut gross shorts.
In the legacy report, the silver net-long for non-commercials fell to 27,390 contracts on long liquidation. Gross longs fell by 2,032 contracts and gross shorts increased by 741 contracts. Commercials are net-short, but cut that position by dropping more gross shorts than gross longs.
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Managed-money accounts in platinum lifted their net-long position to 29,808 contracts for the third straight week by adding 2,570 gross longs and slicing 1,971 shorts, the highest since mid-September. Non-commercials in platinum also raised their net-long position for the third week, to 40,696 contracts, having added 2,182 gross longs and cut 2,177 gross shorts, bringing their net-long position to the highest in a year.
In palladium, the managed-money accounts increased their net-long position to 20,370 contracts by adding 3,489 gross longs and cutting 143 gross shorts. In the legacy report, non-commercials added 4,004 gross longs and cut 220 gross shorts, trimming their net-long to 22,672 contracts.
“Platinum gained as South Africa strikes continue to drag on … (while) palladium benefitted from both S. Africa supply issues and Russian supply concern with shorts covering and longs adding a hefty 4,000 lots (in the legacy report),” TD Securities said.
USB noted palladium gross longs currently sit at 90% of the all-time high.
After turning net long in the previous disaggregated report, large speculators returned to being net short in both CFTC reports. In the current disaggregated report, managed-money accounts are net-short 2,567 contracts, returning to their bearish view. They added 964 gross longs and added 4,990 gross shorts. In the legacy report, funds are now net-short 13,350 contracts of copper, having added 580 gross longs and 5,801 gross shorts.
“Copper net spec turned bearish once again as China’s PMI (Purchasing Managers Index) data disappointed,"
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For further information, see the CFTC’s website.
By Debbie
Follow me on Twitter @dcarlsonkitco
