Speculative traders continue to reduce bullish positions gold, silver and platinum U.S. futures and options, according to U.S. government data released late Friday.
In both the disaggregated and legacy weekly commitment of traders reports issued by the Commodity Futures Trading Commission, the managed-money and larger trader speculative non-commercial accounts decreased their net-long positions in these three precious metals for the second week in a row. The data is for the trade date ended March 13 and encompasses both the futures and options activity combined at the Comex division of the New York Mercantile Exchange.
Prices rose in all of the New York metals during the week-long period covered by the most recent CFTC report. Through March 13, April gold rose $22.10 an ounce to settle at $1,694.20. May silver rose 79.8 cents an ounce to $33.581, June palladium gained $37.25 to $708.85, April platinum rallied $89.90 to $1,701.80 an ounce. May copper rose 16.5 cents to $3.9025 per pound.
Managed-money accounts continue to whittle away at their net long gold position. Their net-long position now stands at 138,499. They eliminated 6,110 gross longs and added 1,388 gross shorts.
The producer and swap dealers categories showed these market participants lower their net short positions in gold. Producers added a few gross longs and cut gross shorts, while swap dealers added many more gross longs than gross shorts.
In the legacy report, large speculators, known as non-commercials, decreased gross longs by 4,721 contracts and raised gross shorts by 4,027 contracts, reducing their net-long position to 163,276 contracts. Commercial traders increased gross longs and decreased shorts, lowering their net-short position.
Barclays Capital said the action in gold is a sign of long liquidation and new shorts being established. "Gross short positions are now at their highest since November and net fund length is at its lowest since Jan. 24, reflecting lighter speculative positioning," they said.
Managed-money accounts reduced exposure to silver on both sides, but cut more gross longs (1,604) than gross shorts (259), thus lowering their net long position to 22,744 contracts. Producers cut both longs and shorts, trimming their net-short position. Swap dealers cut longs and added shorts, lowering their net long positions.
The speculator category in the legacy report showed a decrease in gross longs of 1,330 contracts and reduction in gross shorts of 52 contracts, meaning the net-long for silver fell to 26,538 contracts.
In the legacy report, commercials cut their net-short positions in silver, having reduced more gross shorts than gross longs.
Barclays said the net fund length in Comex silver is at its lowest since the end of January with gross short positions at their lowest since July 2010.
Activity by speculators was mixed in the platinum group metals. In the disaggregated report, managed-money accounts are now net-long 19,557 contracts in platinum, a reduction from the previous report as they cut gross longs and added shorts. In palladium, managed-money accounts added more gross longs than shorts, lifting the net-long to 10,782 contracts.
In the legacy report for platinum, non-commercials added more short contracts than long contracts, lowering the net-long position for funds to 26,182. Commercials remain net-short, but reduced that position by cutting more gross longs than gross shorts. Palladium speculators in the legacy report hiked gross longs and added a couple of gross short contracts, and are now net-long 12,022 contracts. Commercials are still net-short, also having cut gross longs and added to gross shorts.
Managed-money accounts added to net long positions in copper in the disaggregated report. Funds increased gross longs and cut gross shorts, putting their net long position at 14,259 contracts. Speculators in the legacy report, however, trimmed their net long position by cutting gross longs and adding shorts, lowering their net-long position to 9,029 contracts.
For further information, see the CFTC website at: http://www.cftc.gov/MarketReports/CommitmentsofTraders/index.htm
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By Debbie Carlson of Kitco News dcarlson@kitco.com
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