COT Report: Evaluation & Information
Oil Bulls Await OPEC AssemblyGoutdated Longs Liquidated Amid ConsolidationCopper Outlook Rising More and more Bearish
The Predictive Energy of the CoT Report
Oil: As OPEC seems set to increase its present manufacturing quota with a small bullish danger that the cuts may very well be deepened (As a reminder, OPEC sources hinted at deeper oil cuts of 400kbpd). Hedge funds prolonged their lengthy positions in Brent crude, which in flip has saved oil costs considerably underpinned, consequently, speculators now maintain the most important bullish wager in Brent crude oil for the reason that finish of Could.
Gold / Silver: The continued consolidation between $1450-1480 prompted speculators to liquidate some lengthy positions, which had been minimize by eight%, whereas brief positions rose 1%. In flip, this noticed web lengthy positions minimize by over 20ok contracts to the smallest bullish wager since mid-June. That stated, provided that commerce conflict uncertainty persists, draw back in gold is considerably restricted to $1450. (Of be aware, on the seasonal entrance, Gold has tended to backside on the finish of the yr with the valuable steel underpinned by renewed demand in January). Elsewhere, managed funds slashed their silver shorts by 18% (lowest since October 11th) with lengthy positions modestly larger by three%.
Copper: The commercial steel noticed a marginal enhance in web shorts (1-month highs) as traders continued to shed their lengthy positions for a threerd consecutive week. As such, this implies that the optimism pertaining to the US-China part 1 settlement seems to have peaked, subsequently an escalation in tensions between the US and China is prone to deteriorate sentiment additional in copper.
Supply: CFTC, DailyFX (Covers as much as November 26th, launched December 2nd)
*Lengthy & Quick positions are adjusted for open curiosity
— Written by Justin McQueen, Market Analyst
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