European session. The yellow metal trimmed earlier gains, retreating to around $1315.00 per ounce troy in the wake of the fact that hedge funds were reported to have reduced their long exposure to bullion by the most in more than three months, as they begin to doubt a continuation of the recent post-Brexit gold rally.
According to Commodity Futures Trading Commission data released last Friday, the net-long position in gold futures and options dropped by 11 percent to 248,858 contracts for the week ended Sept. 13. This is the biggest decline since the week ended May 24.
The decline in gold holdings can be explained by cautious sentiment among investors ahead of central bank meetings by the U.S Federal Reserve and the Bank of Japan later this week. Gold is expected to keep moving in a sideways to ascending fashion within a narrow range till the market is able to resolve its direction upwards/downwards, after the FOMC/BOJ meetings.
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