Read the Beforeitsnews.com story here. Advertise at Before It's News here.

By HfjNUlYZ (Reporter)
Contributor profile | More stories

Story Views
Now:
Last hour:
Last 24 hours:
Total:

Gold Prices Flat as Hedge Funds Grow Short Bet 89%, China-US Spar at Apec, EU-Brexit in Focus

Monday, November 19, 2018 7:36

% of readers think this story is Fact. Add your two cents.

Adrian Ash is head of research at BullionVault, the world-leading gold trading & ownership service online…

GOLD PRICES edged lower on Monday even as US-China trade tensions failed to improve at a key summit, while longer-term interest rates edged higher amid rumors the US Federal Reserve may end its monetary tightening sooner than expected, writes Atsuko Whitehouse at BullionVault.

World stock markets pushed up 0.3% but crude oil slipped with gold prices.

“As you move in the range of policy that by some estimates is close to neutral,” said US Fed vice chair Richard Clarida on Friday, “then with the economy doing well it’s appropriate to sort of shift the emphasis toward being more data dependent.”

Hitting the lowest level since early October at 3.06% on Clarida’s comments, benchmark 10-year US Treasury yields rose 3 basis points Monday, but held well below this month’s fresh 7-year high at 3.24%.

“The possibility that the Fed might hold a neutral outlook beyond 2018 will keep investors a little more interested in gold‘s safe haven appeal,” reckons Benjamin Lu, a commodities analyst at Phillip Futures in Singapore, also pointing to “a slowdown in the global economy amid the ongoing US-China trade spat.”

Having gained 4 consecutive days last week, spot gold fell 0.2% to $1220 per ounce Monday lunch time in London.

Holdings in the world’s largest gold-backed exchange-traded fund, the SPDR Gold Trust (NYSEArca:GLD), expanded 4.5 tonnes during the last week to 759 tonnes.

But last week saw hedge funds and other money managers increase their bearish betting against gold and cut their bullish bets on Comex futures and options, according to data from US regulators the Commodity Futures Trading Commission.

Net-net that grew the Managed Money category’s overall short position in Comex gold derivatives by 89% from a week before, up to the notional equivalent of 220 tonnes last Tuesday when gold prices broke $1200 per ounce.

That was the largest net short position in five weeks.

The British Pound meantime rallied on the currency market Monday, capping the UK gold price in Pounds per ounce at £950, as Prime Minister Theresa May sought to win support for her draft European Union withdrawal agreement.

Today May told the CBI business lobby group’s annual conference she would not let talk of a leadership challenge distract her from a critical week of negotiations with Brussels.

Already suggesting the UK’s two-year transition period could be extended to 2022, chief EU negotiator Michel Barnier will meet ambassadors from the remaining 27 member states next weekend to approve the deal.

The European Commission is meantime due to issue its opinion on Italy’s planned 2019 budget deficit of 2.4% this Wednesday – a move Italy’s deputy Luigi Di Maio insists Rome will ignore to maintain its “big reforms”.

Like the single Euro currency, gold prices for European investors held flat Monday morning, trading at €1069 per ounce.

The Asia-Pacific Economic Cooperation (Apec) summit meantime ended yesterday with political leaders failing to agree on a formal joint statement for the first time in its 25-year history.

Tensions were already high after China’s President Xi Jinping and US vice-president Mike Pence traded barbs in back-to-back speeches on Saturday.

Pence warned nations against taking Chinese loans, saying the US “doesn’t drown our partners in a sea of debt,” while Xi said implementing tariffs and breaking up supply chains was “short-sighted” and “doomed to failure”.

Trading activity may be thinner than usual this week as the US marks the Thanksgiving holiday on Thursday.

Tomorrow the London Bullion Market Association will release wholesale gold trading volumes among its professional membership for the first time.

Formerly City correspondent for The Daily Reckoning in London and head of editorial at the UK’s leading financial advisory for private investors, Adrian Ash is the editor of Gold News and head of research at BullionVault – winner of the Queen’s Award for Enterprise Innovation, 2009 and now backed by the mining-sector’s World Gold Council research body – where you can buy gold today vaulted in Zurich on $3 spreads and 0.8% dealing fees.

Please Note: This article is to inform your thinking, not lead it. Only you can decide the best place for your money, and any decision you make will put your money at risk. Information or data included here may have already been overtaken by events – and must be verified elsewhere – should you choose to act on it.

Source: https://www.bullionvault.com/gold-news/gold-price-111920182

Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!

Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST

Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)

Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!

Nascent Iodine - Promotes detoxification, mental focus and thyroid health.

Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).

Comments

Online:
Visits:	1,603,102,229
Stories:	8,149,023