(Kitco News) - Short covering boosted large speculators’ net-long silver position in futures and options at the Comex division of the New York Mercantile Exchange, and at the same time these traders added to their gold holdings, according to the latest weekly commitments of traders data from the Commodity Futures Trading Commission.
Large speculators arrested the recent decline in their net-long platinum group metals positions in the CFTC’s disaggregated and legacy reports, and they cut back on copper net-short holdings.
The data is inclusive to Feb. 18. During the week covered by the report, April gold rose $34.60 to $1,324.40 an ounce. March silver rose $1.745 to $21.898. April platinum gained $36.70 to $1,424.50. March palladium rallied $20.80 to $737.15. Comex March copper rose 7.05 cents to $3.2855 a pound.
Managed-money accounts built on the gain in the gold futures and options net-long position seen in the previous report, raising it to 90,942 contracts. These traders added 11,049 gross longs and cut 10,603 gross shorts, which means they added bullish trades and cut bearish ones. Producers’ net-short position rose as they cut gross longs positions and added gross shorts. Swap dealers increased their net-short position by adding more gross shorts than gross longs.
Large speculators’ activity in the gold legacy report mirrored the disaggregated report. Here, too, they reversed the decline in the previous report and added a sizeable chunk of gross longs, 13,146, and cut gross shorts, 7,549. They are now net-long 119,685 contracts. Commercials are net-short and lifted that position by adding more gross shorts than gross longs.
“Positive gold price action along with growing speculation the Fed (Federal Reserve) may moderate the pace of the QE3 (third quantitative easing) taper prompted specs (speculators) to cover shorts and take new longs,” TD Securities said.
Despite the gains, HSBC notes gold may have further room for gains as gold speculative longs remain at a historically low level.
Managed-money accounts lifted their net-long holding in silver to 18,504 contracts, but did so by short covering, rather than new buying. They cut 301 gross longs and 11,131 gross shorts, ultimately lowering exposure to the metal. Producers raised their net-short position by adding more gross shorts than gross longs. Swap dealers turned net short as they cut gross longs and added gross shorts.
In the legacy report, the silver net-long for non-commercials more than doubled from the previous report, to 26,390 contracts, but also came mostly as funds covered short positions. Gross shorts fell 12,084 contracts and gross longs rose 1,557 contracts. This is the second week that net-long positioning rose on short covering. Commercials are net-short and raised that position by adding more gross shorts than gross longs.
“Silver investors aggressively covered their short exposure and increased longs, as technical factors pointed to higher prices,” TD Securities said.
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Managed-money accounts in platinum reversed recent declines and raised their net-long position to 24,177 contracts by adding 1,229 gross longs versus cutting 1,369 gross shorts. Non-commercials in platinum also raised their net-long position to 34,310 contracts, having added 768 gross longs versus cutting 1,106 gross shorts.
In palladium, the managed-money accounts lifted their net-long position to 17,111 contracts by adding 162 gross longs and cutting 1,235 gross shorts. In the legacy report, non-commercials cut 310 gross longs and 1,435 gross shorts, nudging up their net-long to 19,060 contracts.
Speculators cut their bearish exposure in copper. In the disaggregated report, managed-money accounts are net-short 8,888 contracts, nearly cutting their position in half from the previous report. They added 789 gross longs and cut 6,115 gross shorts. In the legacy report, funds are now net-short 13,845 contracts of copper, having cut 1,565 gross longs and 5,823 gross shorts. The net-short position reduction in the legacy report was not as pronounced as in the disaggregated report.
“China copper demand worries convinced specs to reduce longs, while technical levels forced material short covering,” TD Securities said, in regards to the legacy report.
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For further information, see the CFTC’s website.
By Debbie
Follow me on Twitter @dcarlsonkitco
