Intraday Market Thoughts

Gold net Longs Break Support

by Ashraf Laidi
Jul 26, 2015 21:22

This Sunday didn't start with gold speculators selling over 55 tonne in less than 2 minutes as was the case 7 days ago. But the effect of last week's gold collapse has been revealed in the latest report of speculators' commitments from the Comex, showing net longs plunging 41% to 28,279 contracts, the biggest percentage decline since November 2013.

Will this week's combination of a hawkish FOMC, an upward revision in US Q1 GDP and a better than expected US Q2 GDP release, emerge as the worst combo outcome for gold? A $1,030 print is next on the cards, followed by $920. 

The difference between a hawkish Fed FOMC statement and an actual rate hike could be a about $200 bn in cancelled energy projects and over $25 bn in potentially distressed energy-related bonds.

Click To Enlarge
Gold net Longs Break Support - Gold Specs Jul 26 (Chart 1)

 
 

Latest IMTs