Gold market: how are the banks positioned?

It should be an interesting week in terms of gold price and stock market development. Among other things, the European Central Bank announces the outcome of its monetary policy meeting and the new reporting season begins in the United States.

 

Gold price claimed

The gold price has re-established itself above the $ 1,800 mark at the beginning of the new week. At 7:30 a.m., $ 1,805 an ounce was paid on the spot market. That corresponded to 1,592 euros. The silver price was quoted at $ 18.88, the equivalent of € 16.66. The framework conditions are unchanged. Despite the difficult economic conditions in the wake of the corona crisis, the stock markets have risen significantly until recently.

 

Banks and gold futures

The current monthly “Bank Participation Report” by the US stock exchange regulator CFTC shows the positions of US banks and non-US banks in trading in gold futures as of July 7, 2020. According to this, a total of 36 institutions were engaged in this area at this time , including 4 US banks. The companies are not mentioned by name.

 

Less net short

All banks together held a net short position of 158,170 futures contracts on the American gold market. This corresponded to forward sales of the equivalent of 492 tons of gold. Because each contract is 100 ounces. Compared to the previous month, the net sales of this group increased by 17.75 percent.