After four weeks of selling, hedge funds jumped back into the gold market and pushed prices to a 5.5-week high, according to the latest trade data from the Commodity Futures Trading Commission.
The CFTC’s disaggregated Commitments of Traders report for the week ending March 27 showed money managers increased their speculative gross long positions in Comex gold futures by 34,928 contracts to 183,080. At the same time, short bets fell by 15,428 contracts to 20,917. Gold’s net length increased to 162,163 contracts.
The data show that the gold market saw its most significant shift in bullish sentiment in nearly two years. Gold’s net length jumped 45% from the previous week. The strong buying momentum pushed prices up by more than 2% during the survey period, hitting a five-week high.