Hedge funds scrambling for gold

The growing inflation threat has shifted sentiment in the gold market, with hedge funds significantly increasing their bullish precious metals bets to protect their wealth, according to analysts after reviewing the latest data from the Commodity Futures Trading Commission (CFTC).

The CFTC disaggregated Commitments of Traders report for the week ending Nov. 9 showed money managers increased their speculative gross long positions in Comex gold futures by 31,189 contracts to 168,133. At the same time, short positions dropped by 9,182 contracts to 41,523.

Gold's net length now stands at 125,610 contracts, up more than 47% compared to the previous week. Gold's net length now stands at its highest level since early July 2020.

According to analysts at Société Générale, gold saw its third-largest bullish inflows on record.