Please note: the CoTs report was published on 03/22/2024 for the period ending 03/19/2024. “Managed Money” and “Hedge Funds” are used interchangeably.
The Commitment of Traders report is a weekly publication that shows the breakdown of ownership in the Futures market. For every contract, there is a long and a short, so the net positioning will always be zero, but the report shows who is positioned long or short. Historically, Hedge Funds (Managed Money) dominate the price action in both Gold and Silver. That continues to be the case, but it’s possible that there could also be some Hedge Funds looking to stress the Comex by taking physical delivery.
Please note: the COTs report was published 6/3/2022 for the period ending 5/31/2022. “Managed Money” and “Hedge Funds” are used interchangeably.
Gold
Since the peak on March 8, Managed Money has massively reduced its Net Long positions by 98k contracts or 66%. Despite massive selling, the gold price has actually held up fairly well. The last time Managed Money net longs dropped this low in February, gold was struggling at the $1800 level, versus the struggle at $1850 now.
There is a correlation between Managed Money activity and the price of gold. Managed Money net longs str down from their March peak. This indicates there is money on the sideline that could rush into the market if gold breaks through current resistance
Please note: the COTs report was published 4/1/2022 for the period ending 3/28/2022. “Managed Money” and “Hedge Funds” are used interchangeably.
Looking at the data, it appears hedge funds are currently driving price action in the gold market
Please note: the COTs report was published 12/3/2021 for the period ending 11/30/2021. “Managed Money” and “Hedge Funds” are used interchangeably.
Hedge funds closed shorts and went long in both gold and silver in October.
Please note: the COTs report was published 10/29/2021 for the period ending 10/26/2021. “Managed Money” and “Hedge Funds” are used interchangeably.
The Commitment of Traders analysis last month highlighted the potential over-extension of the shorts leading to a rebound. This proved to be the case in a big way. Unfortunately, the momentum lost steam and the $1810s for gold presented too much resistance.
