Saturday, November 25, 2017

Gold volumes and open interest headed towards the most since 2009

Gold volumes on the Comex are up for the third month in a row as traders on Friday rolled over their December contracts into the February time frame.

This three month in a row positive interest is the highest consecutive streak at the Commodities Exchange since 2009 when the gold price began its move towards a new all-time high, and stocks fell to 6600 on the Dow in the midst of what become known as the Great Recession.

Chart courtesy of Bloomberg
As of 2:20 p.m. in New York, volume on the Comex was 52 percent above the 100-day average for this time of day, as traders and investors roll their positions into February futures from the December contract that’s expiring on Monday. Aggregate open interest is headed for a third straight quarterly gain, the longest stretch since 2009, while holdings in exchange-traded funds are near the highest in a year. 
Prices have advanced this month, keeping the metal on course for the biggest annual gain since 2010 after two monthly declines. Gold has benefited from a weakening dollar, tepid inflation that’s spawned divisions among U.S. Federal Reserve officials over a policy path forward, and uncertainties over President Donald Trump’s plan to cut taxes. In Europe, wrangling over Brexit and Germany’s struggles to form a coalition government have underpinned demand for the metal as a haven. -  Bloomberg


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