Speculative financial investors are adding to price pressure on gold and silver, as withdrawals from both exchange-traded funds and managed-money positions help push the precious metals to six-year lows, data showed Monday.
Commitment of Traders data showed net short positions of 13,923 gold contracts in the week to November 17, the first net short holdings by managed-money since August.
The data released by the US Commodities and Futures Trading Commission showed net long positions in silver were 12,205 contracts, down 53.1% on the previous week to a seven-week low.
"Speculative financial investors are no doubt having an even greater negative influence," Commerzbank said in a note Monday.
"Prices continue to be under pressure from different sides," the note said, referring to the strong US dollar in addition to speculative financial investors.
A strong US dollar helped push gold to a new six-year low last week, when it traded below $1,065/oz.
Meanwhile, gold-backed exchange traded funds continue to show withdrawals.
SPDR Gold Shares, the world's largest gold-backed ETF backed by physically held gold, showed withdrawals of 1.19 mt to the week of November 20 to 660.75 mt, its lowest level since 2008.
Total holdings in physically backed gold ETPs are around 1,600 mt.
The London Bullion Market Association Gold Price settled at $1,068.35/oz Monday morning, down $13.40/oz on the previous session.
