Speculators once again switched roles as buyers in nearly all precious base metals futures and options traded on Nymex and the Comex division of the New York Mercantile Exchange as revealed by government data by a prompt rise in prices.

Before the week ended, speculators in the Commodity Futures Trading commission reported a push in their net-long positions in the platinum group metals to an even higher level. Funds also strengthened its net-long positions in copper hoping for a sturdy economic position. There were some increase in speculators’ net-long positions in gold and silver but sadly such gains were relatively modest.

After setting aside positions in the earlier report, managed money accounts discreetly went up its exposure to gold futures and options in the non aggregate report which increased their net-long position to 86,926 contracts and added another 4,807 more gross long cuts and 38 gross shorts. Those who kept watch over the markets have agreed that the modest rise in the speculative net-long in the reports are likely to represent a see-saw action gold is showing which means that the participating traders are not very convinced to place large positions in a market that shows no strong position.

However there were inconclusive and rather different legacy reports that non-commercials deliberately increased their net-long positions having added an actual 13, 623 gross longs and 198 gross shorts. Despite the rise of the net-long position, it does not really make things lighter in the previous week’s analysis.

Based on the legacy report, the silver net-long position for non-commercials rose a bit higher. Commercials are net-short and expanded exposures added more shorts than gross longs. Again, speculators in both contrasting reports in the platinum group metals have further extended the net-long positioning which inadvertently led to new records.
Palladium, in managed-money records raised the net-long position to 22,824 contracts and further added 814 gross longs and 522 gross shorts in order to raise the intended net-long position. The legacy report however, said that the non-commercials added 1,442 gross longs and 416 shorts therefore lifting their net-long of 25,734 contracts.

Copper net-long position in the managed-money accounts increased substantially to 22,650 contracts which added 9,691 gross longs and 1,489 gross shorts. The increase of the net longs was much perceived in the legacy account with funds bolstering net-long positions of 11,213 and 4,390 gross shorts with net-long contracts of 16,187 contracts.

The surprising sharp increasing gains in net-long positioning in copper was indicated in the rise in prices according to analysts. Therefore money managers are responsible for the 2 % increase in the price of copper seen during the period under the review, patently inspired by a good economic outlook both in the US and China.