COT: Major switching from oil to gold and grains last week | Metals Mine

  • COT: Major switching from oil to gold and grains last week

    From home.saxo

    Macroeconomic uncertainties weighed on growth dependent commodities from energy to industrial metals while at the same time supporting another strong week of gold buying. No letup in the deteriorating outlook for US crop production resulted in another across-the-board buying of CBOT grains and oilseeds futures. Seven consecutive weeks of selling has now reduced the combined long in Brent and WTI crude oil by 41% to 421k lots, a near four-month low. This before the tanker attacks in the Gulf of Oman briefly boosted prices before being capped again on demand fears and another counter seasonal rise in US crude oil ... (full story)

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bigtx
Jun 17, 2019 2:30pm
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"On that basis we are now witnessing a battle between strategic buyers versus tactical short sellers. A draw between the two is likely to be seen as long gold stays within a $1,320/oz to $1,358/oz range.

The biggest short-term risks to gold bulls are the potential for the US Federal Open Market Committee proving unwilling to meet the market’s expectations for aggressive rate cuts leading to a stronger dollar and/or a surprise trade deal announcement when Trump and Xi meet at the G20 in Osaka June 28-29. The silver net-short meanwhile was cut by 57% to 8.5k lots with the market struggling to get exited about the white metal despite trading at the lowest level to gold in 26 years."

That's the meat of it right there. If/when gold breaks out, I'll probably ride silver on it's coat tails. Until then, I'm looking to play that range.
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