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Gold rebounds from weekly lows, stays below $2,020
Gold price has gained traction and climbed above $2,010 after having touched its lowest level in a week near $2,000 earlier in the day. With the benchmark 10-year US T-bond yield staying in positive territory above 3.4%, however, XAU/USD’s upside remains capped.
The United States Commodity Futures Trading Commission (CFTC) has recently released data showing the S&P 500 Non-Commercial Net Positions (NC Net Positions) have decreased from $-355.4K to $-376K.
This decrease signifies that there have been fewer large speculators on the S&P 500 such as hedge funds and large investors active in the market for the week ending December 7th, 2020. The latest report provides insight into possible sentiment as investors have become more bearish and thus reduced their exposure to the broad domestic stock market.
The non-commercial net positions are derived from the aggregate of the total open interest of all futures and options contracts of the S&P 500. This data provides a better understanding of investor sentiment as a whole when it comes to the S&P 500, as it is not limited to just one sector or company.
The CFTC data represents a snapshot in time, however it should not be taken as a definite prediction of future economic or market results. It still provides a valuable view of speculator sentiment which can help investors make better decisions when looking to invest in the S&P 500.
In conclusion, the recent data released by the United States Commodity Futures Trading Commission on the S&P 500 NC Net Positions show a significant drop from the previous week. This could provide insight and may be an indicator of investor sentiment, but it should not be taken as an absolute truth for future market direction.