Yesterday, the gold market forged a $22 trading range and spent the majority of the trade in negative territory and it forged that action in the face of sharp gains in crude oil, a failure from the highs in the dollar and in the wake of US scheduled data that could have fostered economic anxiety and tipped Fed needle back in favor of action.

However we now suspect volatility in the gold market might begin to moderate as the market slows its profit-taking liquidation wave and waits for the outcome of the Saturday trade meeting between the US and China. While the G20 meeting is just starting the consensus impact from the meeting is likely to trumpet coordinated support for the global economy and that should be supportive of gold when the markets return to action on Monday.

However, the most recent positioning report in gold showed the non-commercial and non-reportable combined position net long 255,598 contracts and since that point gold prices managed an additional rally of $92 into the high and therefore the net long might have approached the largest level in two years.

However a number of the bullish themes for gold remain in place just under the surface and Gold ETF holdings yesterday increased for the 11th straight day! Apparently exchange traded funds added 107,000 ounces of gold to their holdings yesterday which brings this year's net inflows to 2.89 million ounces.

Unfortunately silver ETF's reduced their holdings by 465,000 ounces but funds have still purchased 4.5 million ounces year to date.

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Non-Reliance and Risk Disclosure: The opinions expressed here are for general information purposes only and should not be construed as trade recommendations, nor a solicitation of an offer to buy or sell any precious metals product. The material presented is based on information that we consider reliable, but we do not represent that it is accurate, complete and/or up to date, and it should not be relied on as such. Opinions expressed are current as of the time of posting and only represent the views of the author and not those of Zaner Financial Services LLC, unless otherwise expressly noted.