Morning Gold/Silver Market Report With Russian President Putin hinting at the prospect of retaliation against the latest round of sanctions, reports of fresh shelling in the Ukraine and a growing list of central banks being called on to stimulate, gold has managed to throw off the bearish track to start the new trading week. With slack Chinese Factory order news over the weekend fostering talk of PBOC easing ahead and calls from the OECD for ECB to launch QE, the environment has become a little more supportive for the metals. In fact, sentiment seems to have shifted slightly to discount the prospect of hawkish dialogue from the Fed on Wednesday and perhaps developments in the Ukraine are lending some speculative safe haven buying. So far, physical demand hasnt been stimulated by flat price declines, as evidenced by yet another outflow from gold derivative instruments on Friday of 9,236 ounces. However, silver saw another noted inflow of 1.5 million ounces and the inflows into silver should begin to catch some headline coverage soon! While the most recent positioning report probably overstates the remaining spec long positioning, due to the $20 an ounce decline after the data was compiled, the gold market remains vulnerable to more long liquidation. The Commitments of Traders Futures and Options report as of September 9th for Gold showed Non-Commercial traders were net long 102,284 contracts, a decrease of 3,540 contracts. The Commercial traders were net short 105,414 contracts, a decrease of 7,880 contracts. The Non-reportable traders were net long 3,129 contracts, a decrease of 4,341 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 105,413 contracts. This represents a decrease of 7,881 contracts in the net long position held by these traders. With silver prices falling another 45 cents from the COT report mark off date, the net spec long in silver has probably come down significantly, but one probably cant say silver is mostly liquidated just yet. The Commitments of Traders Futures and Options report as of September 9th for Silver showed Non-Commercial traders were net long 14,849 contracts, a decrease of 4,186 contracts. The Commercial traders were net short 29,258 contracts, a decrease of 3,467 contracts. The Non-reportable traders were net long 14,408 contracts, an increase of 717 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 29,257 contracts. This represents a decrease of 3,469 contracts in the net long position held by these traders.
Posted on: Mon, 15 Sep 2014 12:26:20 +0000
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