Gold Trade Equal To 3 Million Ounces Sends Futures Tumbling

(November 11, 2019 - Luzi Ann Javier, Bloomberg News)

(Bloomberg) -- Gold futures tumbled to a three-month low as contracts equal to over 3 million ounces changed hands in half an hour, fueling the sell-off.

In the 30 minutes ended 10:30 a.m. in New York, 33,596 contracts were traded, more than triple the 100-day average for that time of day. That helped pushed the most active contract to as low as $1,448.90 an ounce, the lowest since Aug. 5.

“The sharp, violent move lower quickly suggests stops or a liquidation,” Tai Wong, the head of metals derivatives trading at BMO Capital Markets, said in an email.

On Friday, the Commodity Futures Trading Commission released data showing hedge funds boosting their bets on gold’s decline by 15% to 31,111 futures and options in the week ended Nov. 5, the highest since early June.

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Getting Out of Gold, JPMorgan and Citigroup Tilt Toward Risk

(November 11, 2019 - Joanna Ossinger, Bloomberg News)

 

(Bloomberg) -- Strategists at two giant Wall Street banks closed out their bets on gold as the traditional haven gets a hammering from investors shifting to risk-on mode.

JPMorgan Chase & Co.’s asset-allocation team including Marko Kolanovic, Nikolaos Panigirtzoglou and John Normand said it unwound its gold hedge, moving to an underweight recommendation from an overweight one. Citigroup Inc. strategists including Jeremy Hale abandoned a long position in gold, in their . . . .

 

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