Gold closed the month of August on a high note at $1201. We have started September with data from the CFTC showing there is some short positioning recovery from investors. However it’s still a long way for average levels, having covered shorts by 11,777 lots as of 31st of August; it stands now at 210,433 lots.
Today is Labour Day in the US, the volume is therefore quieter than usual, trading in the range of $1196-1206. Technically the MACD shows a bullish move and that momentum has turned towards positive.
The ETF has reported it has reduced their holding by 24,628 oz taking its overall net sales this year to a 485,921 ounce reduction. However ETF’s silver has added 1.25 million ounces to their current holdings, taking their holding to 6.46 million ounces for this year.
Palladium has registered its biggest gain for this year, as we continue to see buying interest in this precious metal. This demand is largely due to the industrial demand from car manufacturers as it is used in catalytic converters to curb harmful emissions.
In other news the Reserve Bank of India has bought gold for the first time in nine years, adding 8.46 tonnes of gold during the financial year 2017-2018 which ended on 30th of June 2018. Their overall total now stands at 560.30 tonnes.
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