17 APRIL 2025
The chart below tracks the net positioning of managed money traders in gold futures (blue line) alongside the gold price (red line).
Managed money net exposure is calculated as the difference between the number of long and short contracts held by hedge funds and other institutional traders in the COMEX gold market.
When net positioning reaches elevated levels, it often signals excessive bullish sentiment, making the market vulnerable to a reversal.
Currently, managed money net long positions have surged to levels that, over the past decade, have often preceded meaningful pullbacks in the gold price.
This suggests that speculative positioning is stretched, raising the risk of a correction as traders lock in profits.
The content of this communication is for information purposes only. Bentley Reid believes that, at the time of publication, the views expressed and opinions given are correct but cannot guarantee replication of depicted performance. Viewers intending to take action based upon the content of this communication should first consult with the professional who advises them on their financial affairs. Capital invested will be at risk, and you may get back less than you invest. The past is not a reliable indicator of future performance. Neither the publisher nor any of its subsidiaries or connected parties accepts responsibility for any direct or indirect loss suffered by a recipient as a result of any action or inaction, in reliance upon the content of this communication.
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