The price of gold was firmer at the New York opening on Monday as buyers took the view that resumption of its safe haven status might accompany the derailment of the latest package for the ailing Greek economy. However, initial hopes that drove gold to $1,175 per ounce have turned stale, leaving the precious metal barely changed at $1,167 per ounce.
The lackluster tone to the underlying price of gold finds shares in gold-mining stocks lower. Even shares in the sector’s best performer Alamos Gold are trading down on the session, while New Gold Inc., Novagold Resources Inc. and Lake Shore Gold Corp. are lower by about 7%. One possible reason for weakness in mining stocks, despite the fact that gold is holding its head above water, could be that gold bulls are deserting the sinking ship.
According to the CFTC positioning report released late on Friday, the net number of long positions held among speculators fell to 115,820 contracts through Tuesday, March 3. That is down by 10,300 on the prior week, is the lowest net reading since December 23 and down from 189,000 as of end-January. The latest report revealed a decline of 3,855 in the number of long positions and a jump of 6,496 in the reading of short positions. And that’s all before Friday’s 2015 low for spot gold.
Chart shows that there are the fewest gold bulls since Dec. 23