CFTC (Commodity Futures Trading Commission)
The U.S. Commodity Futures Trading Commission (CFTC), based in Washington, D.C., is an independent U.S. federal agency created in 1974 that regulates futures markets (like), as well as option and swap markets.
The stated mission of the CFTC is to “foster open, transparent, competitive, and financially sound markets, to avoid systemic risk, and to protect the market users and their funds, consumers, and the public from fraud, manipulation, and abusive practices related to derivatives and other products that are subject to the Commodity Exchange Act”. To achieve these goals, every Friday at 3:30 p.m. Eastern Time, the CFCT releases the Commitments of Traders Report (CoT report) which provides market participants with a breakdown of open interest positions (i.e., the total number ofnot yet liquidated by an offsetting transaction or fulfilled by delivery) of all major contracts that have more than 20 traders (including gold).
CFTC and Gold
The agency is behind one of the most importantmarket, which enables investors to peek behind the scenes of the market and to see what large gold traders are doing. It provides important data on trading positioning that drives trends in the – this is why data from the CoT reports can be used as a sentiment indicator in the gold market.
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