The gold price went through an eventful trading week. Gold and silver showed weakness in the short term. In the US, positions in gold futures remain close to their recent record highs. It remains exciting.
Gold price remains strong
The gold price put a little roller coaster ride on the floor last week. On Wednesday, the gold ounce hit a close 6-year high at $ 1,611 (FOREX) during the day. At least $ 71 was between the weekly high and the weekly low ($ 1,540, intraday on Thursday). The euro gold price fluctuated between 1,386 and 1,443 euros (57 euros or 4 percent exchange rate range) and meanwhile marked a new all-time high.
The market environment
Milder tones in the US-Iran conflict and the upcoming signing of a transition deal in the US-China trade dispute took the wind out of gold and silver. Weaker US job market numbers on Friday brought some support to precious metal prices again. And so little has changed on the US futures market compared to the previous week, despite the margin increase on Thursday.
The current CoT data from trading in gold futures on the US commodity futures exchange COMEX show that there were only minor changes in the positions of the largest trader groups compared to the record levels in the previous week as of January 7, 2020. The net short position of the “Commercials” decreased by 2.8 percent to 356,081 contracts. On the other hand, the net long position of the “big speculators” fell by 1.7 percent to 322,291 contracts.