Gold futures inched down Monday, putting them on course to settle lower for the first time in a dozen sessions.
The modest weakness for gold futures come after they notched their 11th consecutive higher settlement on Friday. That’s the longest winning streak for a most-active futures contract based on data from FactSet going back to late 1984.
The recent rally for gold
may have been powered by short-term traders, according to Commerzbank analysts.
“The CFTC’s statistics published on Friday evening showed once again that the 6% increase in the gold price since mid-December was driven largely by speculation,” the analysts wrote in a note Monday, referring to U.S. Commodity Futures Trading Commission data.
“In the three weeks to Jan. 2, speculative financial investors nearly doubled their net long positions to 148,200 contracts.”
The Commerzbank analysts have suggested the advance by gold futures might be due for a pause.
“Correction potential has built up again,” they said. “If market participants maintain their high risk appetite and if, for example, stock markets continue to soar, we could see profit-taking.”