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Hedge Funds Step Back from Betting against Gold

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The recent market trend shows hedge funds reducing their bearish stance on gold as per the latest evaluation from the Commodity Futures Trading Commission. However, experts suggest that if gold prices are to exceed an initial resistance of £1,503.65 per ounce, bullish sentiment must improve.

In their weekly review ending 29th August, the Commission’s Commitments of Traders report revealed a slight decrease in speculative gross long positions in Comex gold futures along with a significant drop in short positions.

Gold and silver seem to be caught up in a neutral trading range amidst rising bond yields and substantial strength observed in the U.S. dollar. Nickey Shiels, Head of metals strategy at MKS PAMP states that investors’ net contribution is approximately £23 billion worth of Precious Metals but this leans very much towards neutrality.

  • The updates show the gold market now being net long by up to 50,365 contracts.
  • This increase was spurred mainly by a sizable short squeeze which despite facilitating short covering was not enough for breaking resistance at £1,503.65 per ounce level.
  • Instead, prices dropped to support around £1,484 an ounce within the survey period.

Persistent inflation accompanied by oil prices reaching almost year-high levels means that the Federal Reserve is forced to uphold higher-for-longer monetary policies, thereby leading to potential headwinds for gold. According to some market analysts, it could possibly push it to test support around £1,426 per ounce.

Not too dissimilarly, silver is also seen losing momentum as its investors are reducing their overall exposure. A significant decline was observed in both speculative gross long positions and short positions in Comex silver futures.

  • This pronounced drop caused a decrease by 13,348 units in silver’s net length over two weeks of substantial increases.
  • Throughout the survey period, silver prices were unable to maintain support at either the $25 or $24 levels, or approximately £18 and £17 respectively.

In spite of its current struggle, experts suggest that maintaining a long-term bearish stance on this precious metal may not be feasible due to its steady industrial demand especially within the global green energy transition sector.


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London’s Container Estate to Close: Not Fit For Purpose!

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It’s official, the Marston Court estate in Hanwell, west London, manufactured from converted shipping containers, is set to be decommissioned by Ealing Council. The announcement comes after officials deemed it “not fit for purpose”. A scheduled closure period of 2023-24 fits into the council’s new four-year plan for the borough.

Current residents will not be left out in the cold. They’ll transition to temporary accommodations while a permanent solution is sought. This revelation prompts discussion on the broader issue of using shipping containers as homes – a trend that has attracted criticism and has been branded “unsuitable” by many experts.

Key points to note:

  • The Marston Court estate was designed as an emergency accommodation remedy.
  • Residents have reported instances of violence, anti-social behaviour and substandard housing conditions.
  • Prior condemnation of this type of housing came from Shelter – a charity for housing and homelessness – citing it as evidence of an ongoing housing crisis.

The suitability of container homes has been under scrutiny due to cramped conditions and temperature extremities. This concern isn’t just localized; even England’s children’s commissioner has weighed in expressing similar concerns about these living conditions.

In response, Ealing Council highlighted their agenda encompassing much more than simply closing down Marston Court. They pledged an investment amounting to £20m over the next four years on creating 100 new safe and secure residential places within their borough. However, no such commitment exists yet concerning Meath Court in Acton, Marston Court’s equivalent site.

The local authority also committed to infuse a whopping £400m within their council’s housing sector over this four-year period. An objective to ensure that “everyone can live in a safe, secure and healthy home” was stated.

Moreover, their plan proposes the provision of “4,000 new genuinely affordable homes across the borough”. It seems Ealing Council is taking considerable strides towards resolving its housing crisis in an effective manner.

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London Braces for a Soaking as Met Office Rings Yellow Alert

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I don't think it rains this much in London...

Prepare to get your brollies out, Londoners! The Met Office has issued a yellow weather warning indicating heavy rainfall across the capital. This alert signifies potential disruptions due to adverse weather conditions and urges residents to remain cautious.

  • The yellow alert is not exactly ‘brace-for-the-apocalypse’, but it does suggest that weather conditions could interfere with your day.
  • Precipitation levels could reach significant highs that might result in localised flooding and disrupt public transport services.

The rain is expected to continue relentlessly over the coming days, so Londoners should prepare for a good dousing. Residents are advised to monitor local weather updates and plan their journeys accordingly. Weather conditions can turn treacherous quickly, and it’s crucial to be well-informed of any changes or advisories from authorities.

Beyond the inconvenience of getting caught in a downpour or facing delays on your commute, there are other implications of this sort of sustained rainfall. Environmentally speaking, high levels of rainfall can often lead to stormwater runoff which carries pollutants into waterways. The more we can do as individuals to reduce our own contribution – from picking up pet waste to limiting use of fertilisers – can significantly help decrease these types of pollution.

To avoid any mishaps or accidents during this wet period, remember basic safety measures such as slowing down while driving in heavy rains because stopping distances will be longer; staying away from fast-flowing water bodies; and avoid walking or cycling through flood water. And don’t forget that old saying – it’s better to arrive late than never!

  • Mind you though, after all said and done, if you’re a fan of that lovely smell post the rain or ‘petrichor’, prepare to fill your lungs with it for the next couple of days.
  • On a lighter note, this is an ideal time for photographers and nature lovers to capture London’s beautiful scenery draped in rain. So, don’t forget to pack your camera along with your umbrella!

Rain or shine, London continues its hustle. Make sure you do too, but act sensibly. After all, a little weather warning should never come in the way of good ol’ British spirit, right?

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Rail Chaos Looms as c2c Train Drivers Plan Strikes

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Airport Departure Delays

The rail operator c2c recently announced a significant disruption in their train services due to planned walkouts by its drivers. Belonging to the Associated Society of Locomotive Engineers and Fireman (ASLEF), the drivers plan to hold strikes on September 30 and October 4.

  • Action short of a strike is also set for September 29, and between October 2 to 6.
  • The details of what level of services will be available on these days are yet to be disclosed.

Rob Mullen, c2c’s managing director, expressed his disappointment about the lack of an agreement with the trade union. “The impact of this ongoing action is significant for our customers and colleagues,” he stated. He remains hopeful for further productive meetings with unions, aiming to bring an end to this challenging period for the railway industry.

According to Mick Whelan, general secretary of ASLEF, although they regret having to take such action that disrupts passengers’ travel plans, they have been forced into this position. Interestingly enough, these strikes coincide with the Conservative party’s annual conference—a strategic move?

Whelan highlighted that their members have not received a pay rise since 2019 despite sizeable inflation during this period. “Train drivers quite reasonably want to be able to buy now what they could buy four years ago,” he explained.

The Department for Transport was crystal clear—strike actions will not prevent essential workplace reforms while adding strain on taxpayers and potentially dissuading passengers from using railway services.

To those commuting via c2c, it seems there may be choppier tracks ahead. Stay tuned for further updates on this developing story.

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