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
  • 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 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.  

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

Download document

Commitments of Traders: Commodities


The Saxo Bank Group entities each provide execution-only service and access to permitting a person to view and/or use content available on or via the website is not intended to and does not change or expand on this. Such access and use are at all times subject to (i) The Terms of Use; (ii) Full Disclaimer; (iii) The Risk Warning; (iv) the Rules of Engagement and (v) Notices applying to and/or its content in addition (where relevant) to the terms governing the use of hyperlinks on the website of a member of the Saxo Bank Group by which access to is gained. Such content is therefore provided as no more than information. In particular no advice is intended to be provided or to be relied on as provided nor endorsed by any Saxo Bank Group entity; nor is it to be construed as solicitation or an incentive provided to subscribe for or sell or purchase any financial instrument. All trading or investments you make must be pursuant to your own unprompted and informed self-directed decision. As such no Saxo Bank Group entity will have or be liable for any losses that you may sustain as a result of any investment decision made in reliance on information which is available on or as a result of the use of the Orders given and trades effected are deemed intended to be given or effected for the account of the customer with the Saxo Bank Group entity operating in the jurisdiction in which the customer resides and/or with whom the customer opened and maintains his/her trading account. When trading through your contracting Saxo Bank Group entity will be the counterparty to any trading entered into by you. does not contain (and should not be construed as containing) financial, investment, tax or trading advice or advice of any sort offered, recommended or endorsed by Saxo Bank Group and should not be construed as a record of ourtrading prices, or as an offer, incentive or solicitation for the subscription, sale or purchase in any financial instrument. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, would be considered as a marketing communication under relevant laws. Please read our disclaimers:
- Notification on Non-Independent Invetment Research
- Full disclaimer

Check your inbox for a mail from us to fully activate your profile. No mail? Have us re-send your verification mail