Investors Positioning for Crude Oil Rally, Gold Bulls Persist – COT Repor

COT Report: Gold, Silver, Crude Oil, Copper Analysis & News

• Fundamental Support for Gold Sees Investors Raise Bullish Bets
• Speculators Beginning to Position for Future Oil Rally
• Short-Term Factors Remain Bearish for Oil However

The Predictive Power of the CoT Report

Gold: In the week to April 28th, funds raised their long positions in gold by 2%, while outright shorts were slashed by 16%. As such, given that the macro backdrop remains fragile, fundamental support for the precious metal looks set to persist, particularly with renewed US-China tensions.

Oil: Speculators have increased their long exposure to crude oil futures with buying likely driven by the risk-on sentiment. Alongside this, despite the short-term pressures expected to weigh on the energy market due to storage capacity constraints and oversupply, speculators appear to use this as an opportunity to prepare themselves for a future rally.

Current Positions

Source: CFTC, DailyFX (Covers up to April 28th, released May 1st)

Oil Price Chart and Positions

Gold Price Chart and Positions

Silver Price Chart and Positions

Copper Price Chart and Positions

*Long & Short positions are adjusted for open interest

— Written by Justin McQueen, Market Analyst

Follow Justin on Twitter @JMcQueenFX