According to the CFTC weekly report (W/E June 26), following central bank divergence which precipitated USD strength, particularly against emerging market currencies, even consolidating interest rates and growing trade angst were unsuccessful in sparking interest in gold.
Key Quotes
“In fact, money managers continued to reduce their net length, adding shorts in response to downward momentum and technical indicators, while longs stayed on the sidelines as investor interest fades.”
“Similar to investor action in response to previous US-China trade tensions, copper specs have been heavily reducing exposure once again.”
“After weeks of reducing exposure, the WTI crude specs were back in full force, aggressively adding back longs and covering shorts. Indeed, traders were convinced to get bullish on oil again after OPEC+ decided to increase production 600k-1m bpd, less than the market was pricing in before the meeting.”
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