Gold Update

Spot gold holds at $648.35/oz ($646.35/$653.75 range), with the precious metal, like FX and stocks, weighed by risk aversion.

CFTC data shows speculative positions at 16.12 mn oz as per March 6 vs 21.62mn oz the prior week.

The sharp decline of 5.5m oz was "one of the largest one week sell-offs seen in the gold market", noting also that there have been only 3 occasions since 2000 where positioning declines were more than 5 mn oz in a week.

Nevertheless, at 16.12 mn oz - positions remain "elevated" and suggest scope for further gold declines. Only when the COTR report has seen most of the recently added speculative long positions eliminated OR we see very steady and solid physical demand returning to the gold market will we turn tactically bullish on gold.