COT: Gold longs cut by a third ahead of Friday spike
- Bullish commodity bets up by 5% for week ending May 31
- Net buying highest among grains as soybeans shoots to four-year high
- Gold net longs cut by one third ahead of NFP report
- Gold rose to above $1,240/oz in aftermath of dismal NFP
Corn net-longs doubled while soybeans it hit the highest in almost four years.
The energy sector was pretty quiet with WTI crude settling into a relative tight range ahead of the Opec meeting last Thursday. Most noticeable was the fact that both long and short positions were reduced ahead of this potential key risk event.
During this period, however, longer term and less tactical investors continued to accumulate gold through exchange-traded products.
Friday’s surprisingly weak US job report triggered a scramble to reinstate long positions and it helped gold settle above the key technical level at $1240/oz.
The rally has been driven by rain in Brazil which has slowed harvest and port loadings, thereby adding to global supply concerns.
Ole Hansen is head of commodities strategy at Saxo Bank