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Gold Drops Despite CoT Report and Recent Rally

January 7, 2014 at 22:39 by Andriy Moraru

The latest Commitments of Traders report has been released by CFTC yesterday. It has shown a rather sharp rise in net long positions of big speculative traders. Usually this is a bullish sign, pointing to establishment of some sort of uptrend.

Combined futures and options contracts reportable to US Commodity Trading Futures Commission added 1,921 long ones to 106,675 and declined by 3,481 short ones to 72,571 during the week ending Tuesday, December 31. This resulted in a change in net long contracts from 28,702 to 34,104 or about 18.8 percent in one trading week.

The metal was rallying every single trading day (of 5) starting December 31, gaining about 3.4 percent during that period. Spot gold price dropped from $1,239.26 to $1,231.34 per troy ounce today. The provisions for gold issued by major analysis and forecast organizations remains weak, however. It is also worth noting that the precious metal lost about one third of its value in 2013.

If you have any questions and comments on the commodities today, use the form below to reply.

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