CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Weekly COT report: Investors kept piling into gold

Article By: ,  Market Analyst
February 28, 2022 2:10 AM

As of Tuesday 2nd February 2022:

  • Net-long exposure to the US dollar fell for a sixth week of $5.06 billion, according to data compiled by IMM.
  • Large speculators flipped to net-long exposure on GBP futures.
  • Traders were their most bullish on euro futures in 32 weeks.
  • The euro was the only currency which saw a weekly change above 10k contracts, which saw net-long exposure increase by 11.7k contract.
Read our guide on how to interpret the weekly COT report

EUR futures:

Net-long exposure to euro futures rose tot their most bullish level in over six months (32 week to be exact). However, price action is not currently justifying the bullish positioning having sunk to its lowest level since May 2020 on Friday. Furthermore, longs were trimmed over the past two weeks. Over the past 13-weeks short contracts have trended lower, so the rise in net-bullish exposure has been down to short-covering as opposed initiative bulls buying.

As of Tuesday 2nd February 2022:

  • Investors flocked to gold last week net-long exposure rise to a 14-week high.
  • Platinum, a key export for Russia, also saw et-long exposure rise to a 14-week high.
  • Whilst oil prices rose, net-long exposure to crude fell to a 7-week low.

Gold futures:

Gold rose over 5% last week. Admittedly it then handed back those gains during a volatile day when Russia invaded Ukraine, although today’s gap higher shows the metal remains in demand. Both large speculators and managed funds increased net-long exposure to a 14-week high, although large speculators saw longs and shorts rise whilst managed funds only rally increased their gross long exposure. It is difficult to tell how many of these longs were liquidated then gold fell from its 16-month high during an extremely volatile session, but it does suggest that if they were not stopped out they were potentially closed to attend margin calls in other markets.

 

How to trade with City Index

You can easily trade with City Index by using these four easy steps:

  1. Open an account, or log in if you’re already a customer 

    • Open an account in the UK
    • Open an account in Australia
    • Open an account in Singapore

  2. Search for the company you want to trade in our award-winning platform 
  3. Choose your position and size, and your stop and limit levels 
  4. Place the trade

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024