Federal Reserve's tightening bias keeps hedge funds out of gold market

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Federal Reserve,Tightening Bias,Hedge Funds

Although inflation pressures are easing and a weakening economy is starting to cool down the labor market, analysts have said that the Federal Reserve still isn't ready to shift its tightening bias, which is keeping hedge funds out of the gold market.

Although inflation pressures are easing and a weakening economy is starting to cool down the labor market, analysts have said that the Federal Reserve still isn't ready to shift its tightening bias, which is keeping hedge funds out of the gold market. The latest trade data from the Commodity Futures Trading Commission (CFTC) shows the fear trade that drove gold prices to $2,000 an ounce last month has run its course and according to some analysts, the market needs a new catalyst.

The CFTC's disaggregated Commitments of Traders report for the week ending Nov. 14 showed money managers dropped their speculative gross long positions in Comex gold futures by 7,685 contracts to 132,924. At the same time, short positions rose by 6,235 contracts to 68,609. Gold's net length fell to 64,315 contracts. This was the gold market's first decline since mid-October. Last month, the gold market saw near-record speculative bullish interest as a war between Israel and Hamas created new uncertainty and chaos in the Middle Eas

 

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