From Kitco:
According to some analysts, there is further evidence that gold’s selling momentum is running out of steam as the latest trade data from the Commodity Futures Trading Commission showed little change in bearish gold sentiment.
The CFTC’s disaggregated Commitments of Traders report for the week ending July 3 showed money managers increased their speculative gross long positions in Comex gold futures by 3,127 contracts to 107,402. At the same time, short bets rose at a slightly faster pace, increasing by 4,400 contracts to 109,929. Gold’s net-short positioning stands at 2,527.
The continued selling pressure kept gold prices at the bottom end of their current range near a one-year low, below the critical psychological level of $1,250 an ounce.
Bill Baruch, president of Blue Line Futures, said that despite the continued weakness, he still sees value in gold at current levels.
“The overall managed-money short position of 109,929 contracts is the highest level since December 2015 when gold bottomed, and shorts amassed 110,836 contracts,” he said.
Commodity analysts at Commerzbank continue to be frustrated with the price action in the gold space as they don’t think the selling pressure justifies the current price level.
“Admittedly, speculative market participants have been betting for the most part on falling gold prices – they have not significantly expanded their net-short positions in the past two weeks,” they said.
While some investors are optimistic on gold as a contrarian investment opportunity, others note that the market still has one dominant beast to fight: the U.S. dollar.