Money managers and investors have increased bullish gold positions for the fourth consecutive week, data from the US Commodity Futures Trading Commission showed Monday, as the precious metal continues to outperform in 2016.
Net long positions in gold held by managed-money investors rose to 16,803 contracts in the week to January 26 from 439 positions a week earlier, CFTC data showed.
Investors were net short gold for a record period of 8 weeks during November and December as gold prices slid to almost $1,000/oz, but support from safe haven demand on market volatility since the turn of the year has added over $100/oz to the price.
Commerzbank said in a note Monday speculative investors have provided a "tailwind" to gold prices in the last few weeks, with holdings in exchange-traded products also higher.
The world's largest gold-backed ETP, SPDR Gold Trust, showed additions of 5.06 mt in the week ended January 29, taking total additions for January to over 26 mt, the highest monthly addition for 12 months.
Gold was trading on spot markets above $1,120/oz Monday, buoyed by weak economic data from China leading to renewed uncertainty among market players about the state of the global economy, Commerzbank said Monday in a note.
Chinese manufacturing data showed a sixth consecutive month of declines in its PMI, while US economic growth slowed to 0.7% in the fourth quarter of 2015, down from 2% in the third quarter, data released late Friday showed.
While physical demand has been reported weak in India on higher prices, Chinese demand has been heard steady on buying ahead of the Chinese New Year.
Net long positions in silver were up 54.4%, also to an 11-week high of 16,449 contracts, according to CFTC data, with platinum 21.2% higher at 7,292 contracts.
Palladium was 8.9% lower at 6,097 net long positions.
