The latest position data shows that hedge funds and speculators have been betting on gold prices for two consecutive weeks. Political uncertainty in Europe and the United States has once again raised the market's safe-haven demand.
According to data released by the US Commodity Futures Trading Commission (CFTC) last Friday, speculators increased their holdings of 13,959 gold-looking contracts in the week ending last Tuesday. The bearish contracts barely changed, only 48 contracts were added.
During the week, the net long position of gold rose by 14,000 to 132,000, the highest increase in five weeks.
It is worth noting that during the reporting period, CFTC rose by 0.2%, with an average price of $1,262.70. The increase in non-farm payrolls data last Friday was significantly lower than expected, causing the price of gold to break through $1,280, a six-week high. The US dollar index fell below the 96.50 mark, and the dollar fell more than 1% in a week.
The red line in the figure below represents the trend of gold net multi-storage. According to the data of the past 10 years, the current net speculative position of gold is at an average level. This means that from the position data, the current gold price is neither in the “overbought†nor in the “oversold†state.
Gold headline has previously mentioned that Deutsche Bank based on nine gold price indicators, the fair value of gold is 1015 US dollars / ounce, about 20% lower than the current gold price. Deutsche Bank said it is because people in the market are more aware of risks and uncertainties.
Short-covering continues to keep silver net long positions
As of Tuesday, the speculative net long position of silver rose by about 12,000 to 42,000 contracts.
The gold headline network mentioned earlier that the silver net long position continued to fall sharply in early May after hitting a record high. The rebound in the past three weeks has been mainly driven by short covering. From the position data, there is no substantial growth in the multiple positions of silver, which means that the market lacks more momentum. 
The decline in silver industry demand and silver coin consumption is also not conducive to silver fundamentals.
Komi hearing or re-rising
After a week of silence, Trump’s “Left Door†and “TongRumen†scandals seem to be expected to regain the headlines of the world’s authoritative media next week.
James Comey, the former head of the Federal Bureau of Investigation (FBI), will go to the Senate Intelligence Committee to testify on June 8. His publicly-recognized public exposed fabric will interact with President Trump in the past few months. The situation provides clues.
On the same day, the UK will hold a general election. Potential political risks in Europe may reinvigorate risk aversion.
A terrorist attack on landmark buildings such as the London Bridge on Sunday took place. Affected by this, some of the ongoing UK elections will be postponed. Labour Party leader Jeremy Corbyn, whose polling support rate continues to rise, said Britain must thoroughly investigate relations with Saudi Arabia and other Gulf states.
(Editor: Fang Fengjiao HF055)
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