Article / 22 May 2017 at 7:22 GMT

COT: Funds dumped gold and silver ahead of Trump rally — #SaxoStrats

Head of Commodity Strategy / Saxo Bank
Denmark
  • Despite political uncertainty in the US precious metals were sold again
  • In energy natural gas got bought while WTI crude reduction continued
  • Cotton and cocoa both benefiting from strong price rallies
Cocoa
Cocoa prices rallied recently. Photo: Shutterstock
 
By Ole Hansen

Hedge funds continued to reduce bullish bets in gold and silver during the week ending May 16. This despite the rising political uncertainty in Washington which on Wednesday helped drive the spike higher. Selling of oil began slowly as Opec support picked up ahead of the meeting this Thursday. 

Speculative positioning in Commodities
The energy sector was mixed with strong buying of natural gas and products off-setting a continued reduction in WTI crude oil . 

A rise in the gross-short in oil to a six months high was the main reason behind another reduction in bullish oil bets. This development helped to drive the strong recovery last week as Opec's verbal support and another bullish US inventory report helped to trigger short-covering.

WTI Crude oil
 
Precious metals were sold again despite renewed support from rising political uncertainty in Washington. Bullish bets on gold hit an eight week low following a 58% reduction so far this month. A fifth week of silver selling has reduced the net-long from a record 99,000 lots to just 18,300 lots. HG copper gross-short was reduced as China signalled an easing of the recent tightening stance.  

Metals
The grain sector was reduced again but a two-way fight emerged in corn where both long and short positions increased.

Grains and soybeans
 
The soft sector was mixed with cotton and cocoa both benefiting from strong price rallies while the sugar and coffee net-longs continued to dwindle. 

Soft commodities
 
More charts can be found in the attached report.

— Edited by Clemens Bomsdorf


Ole Hansen is head of commodity strategy at Saxo Bank




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Commitments of Traders: Commodities

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