Loading ...On top of market-moving news, analysts have also pointed out the high level of long position holdings for precious metals in the latest CFTC data, warning that the upside may run into a ceiling soon.
According to the latest CFTC data, the speculative position in precious metals is high, with gold, silver and platinum all having net speculative length as a percentage of open interest close to the highest level seen this year, or well above the five-year average level.
“While the futures market is likely to drive the metal price only in the short term, it does indicate to us that, given the large speculative long position already present in these metals, their prices are likely to struggle to regain upward momentum,” said analyst Walter de Wet from Standard Bank.