Gold heads into Monday having fallen some 7% over the previous week on profit-taking.
However, at over $1,992 per ounce, it is still trading close to a six-month high and while bullish momentum has abated, the broad picture is now one of range-trading.
The most recent (31 October) CFTC Commitment of Traders report published late on Friday revealed that speculative money managers and other (mostly retail) speculators have continued to add to net long futures positions. In aggregate, net longs are now at a 14-week high.
Recent physical gold fund positioning has also been more positive, with broadly stable weekly flows after a near-continuous downward trend since early June. Incoming data for Q3 also indicates that both bar and coin investments remain healthy, while central banks’ appetite for gold is unabated.
Key incoming data for gold during the week includes:
Monday: Bank of Japan Monetary Policy Meeting Minutes. Eurozone Servies PMI expected to have contracted further in October
Tuesday: Reserve Bank of Australia rate decision expected to see a 0.25% hike to 4.35% in the face of stubborn inflation.
Wednesday: New York Fed President Williams speech.
Thursday: China’s October inflation is expected to edge up from zero. Fed Chair Powell to speak on global monetary policy at IMF conference panel.
Friday: UK September GDP expected to slightly contract. ECB President Lagarde to speak at the FT conference. US Michigan Consumer Sentiment for November is expected to edge up slightly.
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