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Money managers slightly increase bullish positioning in gold, silver

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(Kitco News) - Money managers upped their net-bullish posture in gold and silver futures – but not by much – during the most recent reporting week for data compiled by the Commodity Futures Trading Commission (CFTC).

During the week to April 28 covered by the last CFTC report, Comex June gold rose $34.40 to $1,722.20 an ounce, while May silver rose 33.7 cents to $15.328.

Net long or short positioning in CFTC data reflect the difference between the total number of bullish (long) and bearish (short) contracts. Traders monitor the data to gauge the general mood of speculators, although excessively high or low numbers are viewed by many as signs of overbought or oversold markets that may be ripe for price corrections.

The CFTC’s “disaggregated” report showed that money managers’ net-long position in gold rose slightly to 146,406 futures contracts from 146,271 the week before. This occurred as the short covering slightly outpaced the long liquidation, as both bulls and bears exited from the market. Gross shorts fell by 1,602 lots, while total longs declined by 1,467.

“Despite a fiery performance in risk assets amid hopes of a 'Great Reopening,' speculators added to their gold length,” said TD Securities.

Commerzbank analyst Carsten Fritsch commented that a massive rise in public debt and unprecedented steps taken by central bankers to combat economic fallout from the COVID-19 pandemic should benefit gold. And, he continued, gold holdings by global exchange-traded funds have been rising lately, increasing by nearly 160 metric tons last month.

However, he said, speculative interest in gold from futures “remains limited” with the bullish positioning remaining at a “comparatively low level.”

Meanwhile, money managers ’net-long position in silver rose to 14,489 futures contracts from 13,791 the week before. The fresh buying outpaced fresh selling, as gross longs rose by 1,785 lots and gross shorts climbed by 1,087

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