Gold’s net bullish positions snap three-week losing streak

• Gold’s net bullish positions increased for the first time in three weeks.
• Positions remain  in bullish territory for the eighteenth straight week.

Gold speculators increased their bullish net positions in the week ended March 19, the Commodity Futures Trading Commission (CFTC) data released on Friday showed.  

The non-commercial futures contracts of Gold futures, traded by large speculators and hedge funds, rose by 9,577 net contracts to 88,396 contracts with the gross long and short positions falling by 925 contracts and 10,502 contracts.

Notably, net positions remained in bullish territory for the eighteenth straight week, having dropped in the previous three weeks.

Investors squared off shorts likely in anticipation of the dovish Fed. The US central bank kept rates unchanged last Wednesday and slashed 2019 interest rate hike forecast to zero. The rate hike pause, however, was priced in by markets in the last four months. Hence, the post-Fed weakness in the US dollar (and strength in gold) was short-lived.  

As of writing, gold is trading at $1,311, having clocked a high of $1,320 on Thursday.