COT: Record gold buying pace continued ahead of FOMC
Head of Commodity Strategy
Summary: Hedge funds increased bullish bets across 24 major commodity futures by 44% during the week to June 18, the day before the FOMC meeting.
To download your copy of the Commitment of Traders: Commodity report for the week ending June 18, click here.
Gains were led by WTI crude oil, gold, soybeans, corn, wheat and sugar. At the other end, natural gas and Brent crude oil saw most of the selling.
What is the Commitments of Traders report?
The Commitments of Traders (COT) report is issued by the US Commodity Futures Trading Commission (CFTC) every Friday at 15:30 EST with data from the week ending the previous Tuesday. The report breaks down the open interest across major futures markets from bonds, stock index, currencies and commodities. The ICE Futures Europe Exchange issues a similar report, also on Fridays, covering Brent crude oil and gas oil.
In commodities, the open interest is broken into the following categories: Producer/Merchant/Processor/User; Swap Dealers; Managed Money and other.
In financials the categories are Dealer/Intermediary; Asset Manager/Institutional; Managed Money and other.
Our focus is primarily on the behaviour of Managed Money traders such as commodity trading advisors (CTA), commodity pool operators (CPO), and unregistered funds.
They are likely to have tight stops and no underlying exposure that is being hedged. This makes them most reactive to changes in fundamental or technical price developments. It provides views about major trends but also helps to decipher when a reversal is looming.
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