COT: Metals lead pack in broad-based commodity selling
- Net-long across 22 commodities dropped by 13% - five metals were hardest hit
- Gold net-long was cut by 26% to a seven-week low
- Copper exposed to short-covering - and that was what happened this week
By Ole Hansen
The strong demand for dollars last week was reflected in commodities where the net-long across 22 commodities dropped by 13% to 1.1 million lots. The metal sector was the hardest hit with all five tracked here seeing reductions.
From an elevated long to a near record short in just three weeks had left copper exposed to short-covering and that was what we got this past week after the price failed to break support in the $2 to $2.04 area.
-- Edited by Adam Courtenay
Ole Hansen is head of commodity strategy at Saxo Bank.