Gold: Net positioning increased – TDS

CFTC weekly report (W/E Nov 19) points out that after reducing length in previous weeks, the combination of a somewhat less robust USD, lower rates and new uncertainty associated with the US-China trade deal prompted money managers to aggressively increase net gold positioning, notes the research team at TD Securities.

Key Quotes

“Investors covered short exposure as prices rebounded from the lows. At the same time, the upward price momentum helped to drive long positioning higher on speculation that the uncertain macro environment may prompt rates to continue to decline, which would drive prices through resistance to a higher trading range. While uncertainty continues on the trade and economic fronts, it is likely that it will not be enough to continue a significant long extension into the end of the year.”