Gold off to quiet start for the week

(USAGOLD – 6/29/2020) – Gold is level in quiet trading to start the week seemingly unaffected by the surge in coronavirus cases across the southern tier of states and further weakness in the dollar.  It is down $1.50 on the day at $1771.  Silver is down 2¢ at $17.82. Speculators upped their long positions in gold, according to the Commitment of Traders report released on Friday – a change in the dominant trend that began earlier this year.

“Gold speculators,” says COT analyst Zach Storella at Investing.com, “boosted their bullish bets higher for a second straight week and this week’s total (+27,609 contracts) marked the highest one-week gain of the past eighteen weeks. The speculative position had been very much on a downtrend since late February with declines in twelve out of sixteen weeks through June 9th with an overall drop of -145,036 contracts from the bullish position. However, the last two weeks have provided a rebound for the speculative position with a total rise of +43,344 contracts over that time-frame.”

We should keep in mind that a good many contract holders stood for delivery in the recent past putting heavy pressure on bullion supplies. Record U.S. bullion imports from Swiss refiners in April – nearly 112 tonnes – was a reflection of that demand. If the Comex market is moving from subdued to more aggressive long positioning, it could presage higher delivery volumes as we move into the seasonally active second half of the year.

Chart of the Day

Gold and silver – One Year

overlay line chart showing gold and silver price performance in percent through 6-26-20Chart courtesy of TradingView.com
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Gold and silver – Year to Dateoverlay line chart showing gold and silver price performance in percent year to day 6-26-2020Chart courtesy of TradingView.com
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Chart note: Over the past twelve months, gold is up 26.85%, silver is up 18.68% as of this past Friday.  Year to date, gold is up 15.76%, silver is up .99% as of this past Friday.

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