Precious metals remained under pressure on Monday afternoon against a backdrop of a marginally stronger dollar and continual outflows in exchange-traded funds.
Spot gold was last at $1,090.80/1,091.50 per ounce, down $4.80 and confined to an intraday range of $8. Silver was last down 11 cents at $14.62/14.67 and platinum down $9 at $970/975 but palladium edged $6 higher to $611/616.
In ETFs, there were outflows in the funds tracked by FastMarkets for the 15th consecutive session, bringing gold holdings to 1,529 tonnes, the lowest in more than six years.
Long positioning in gold also appears to be “capitulating,” UBS’ Edel Tully said. Gross long positions declined by 1 million ounces according to CFTC data, though that was partly offset by some short-covering, Tully added, as the overall decline in net speculative length was at just 0.62 million ounces.
“Overly stretched short positioning, the emergence of some physical support and the month of July coming to a close likely encouraged some of this trend,” Tully said. “Nevertheless, at 1.14 million ounce gold positioning remains very light, translating into only three percent of the record, and is still the leanest relative to its peers.”
Net short positions increased eight percent to a new record high of 14,600 contracts.
In US data this afternoon, the ISM manufacturing PMI at at 52.7 fell short of forecasts of 53.6 as did ISM manufacturing prices at 44.0 against consensus of 49.5.
The core PCE price index was as expected at 0.1 percent as were personal spending at 0.2 percent and personal income at 0.4 percent.
The post Precious metals under pressure, gold ETF holdings at 09′ low appeared first on The Bullion Desk.
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