Oil has hit a 15-month high on the back of optimism over the Opec deal which needs to be sorted out by November 30. But, with a record long position building across the combined benchmarks, a disappointment could leave some exposed. Full report to come within the hour....
Squawk / 04 July 2016 at 6:03 GMT
Head of Commodity Strategy / Saxo Bank
Silver surged higher in Asian trading with COMEX silver hitting 21.225 up 8.4% since Friday's close. While most of the headlines has been concentrating on gold the white metal has rallied by 47% so far this year. Silvers dual use as investment and industrial metal has helped trigger the strong outperformance against gold with demand for both picking up.
The spike in Asia today however is very unusual and is likely to have been driven by short-covering in Shanghai and buy stops being triggered on COMEX at $20.5 and $20.8 according to Reuters sources.
The XAUXAG ratio which traded above 80 back in March has collapsed below 66 with the longer term average being 60.
All metals are higher with copper hitting a two-month high. Hedge funds held a near record short on June 14 and during the week of June 28 they were still short.
04 July
Ole Hansen Ole Hansen
Just before the latest surge which started last Wednesday hedge funds increased bullish bets by 3.9% to a fresh record of 78057 lots


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