ETF holdings of gold saw an increase of 10.7 tonnes over the week ended 10 June

After a strong increase the previous week, open interest has declined modestly, by 2.7 tonnes over the past week. As of last Friday, gold open interest stood at 1,532 tonnes on COMEX, well below last year’s average of 1,787 tonnes. Accompanying the fall in open interest was a 0.7% w/w fall in prices. Nevertheless, net speculative length is still making steady gains, albeit at a slowing pace. Last week saw 26.7 tonnes added to net speculative length, after the previous two weeks had 59.6 tonnes and 30.4 tonnes added respectively. The net speculative position for gold now stands at 716.9 tonnes — closer to last year’s average of 777.6 tonnes. The increase
in net speculative length was equally due to an increase of 13.6 tonnes in speculative longs, and a 13.1 tonnedecline in speculative shorts.

This is an encouraging sign of growing investor confidence. ETF holdings of gold saw an increase of 10.7 tonnes over the week ended 10 June. Once again, investor interest in gold is growing, which, together with physical demand from Asia, should keep gold well supported. As a percentage of open interest, net speculative length has remained steady at 31.7% (up only marginally from 31.15% in the previous week). This is largely in line with the two-year average of 33%, and continues to indicate a market that is not particularly overextended.