“The yellow metal’s failure to break north of the $1900/oz range, despite a disappointing non-farm report and strong inflation data, catalyzed some CTA selling as upside momentum waned.
The CFTC disaggregated Commitments of Traders report, for the week ending June 15, showed money managers decreased their speculative gross long positions in Comex gold futures by 6,491 contracts to 138,546.
During the survey period, gold price managed to hold initial support around $1,850 an ounce.
Because of the solid economic recovery, many analysts and economists expected the Federal Reserve to lay the groundwork to begin reducing its monthly bond-purchase program by the end of the year.
The disaggregated report showed money-managed speculative gross long positions in Comex silver futures rose by 4,474 contracts to 72,624.
The disaggregated report showed money-managed speculative gross long positions in Comex high-grade copper futures fell by 1,503 contracts to 64,592.
“While supply risks have kept the red metal supported, news that China will release metal from their strategic reserves should see supply risk lessen.