Gold will continue to slide over the medium term on a “re- acceleration” in U.S. growth and a further unwinding of ETF positions, Goldman Sachs Group Inc. said in a report June 12. The bank sees the metal trading at $1,345 in 12 months.
Bullish bets on crude climbed 9.5% to 232,273 contracts, the highest since March 27, 2012, CFTC data show. Crude prices added 1.9% last week, the second consecutive gain. Palladium holdings climbed for a fifth week, the longest streak since February. Prices in New York slumped 3.9% last week, the most since April.
Investors increased their net-short position in copper to 18,772 contracts, from 6,626 a week earlier, CFTC data show. Prices fell for a fifth week, the longest slump since Nov. 9. Supplies will outpace demand by 162,000 metric tons this year, from a surplus of 41,000 tons in 2012, Barclays Plc said June 14.
A measure of net-long positions across 11 agricultural products climbed 5.9% to 321,537 futures and options, as soybean and cotton holdings gained. The S&P’s Agriculture Index of eight commodities dropped 6.3% last week, the biggest slide since September 2011.
Bullish corn positions fell 9.3% to 82,517 contracts, a three-week low, the CFTC data show. Prices lost 4.6% last week. U.S. production will jump 30% this year and more than double inventories before the harvest in 2014, government data showed June 12. Soybeans dropped 2.4% last week and July wheat futures declined 2.2%.
“There is a glut of supply,” said Stanley Crouch, who helps oversee $2 billion as chief investment officer at New York-based Aegis Capital Corp. “There’s still pretty slack demand. We’re going to have to grow our way into more demand. You’re not going to see the shortages that were feared.”