In both the disaggregated and legacy weekly commitment of traders reports issued by the Commodity Futures Trading Commission, the managed-money and larger trader speculative non-commercial accounts increased their net-long positions in the yellow metal. The data is for the trade date ended Nov. 1 and encompasses both the futures and options activity combined at the Comex division of the New York Mercantile Exchange.

A rise in prices for gold may have encouraged funds to add to net-long contracts. During the timeframe measured, most-active December gold futures contract on Comex rose $11.40 an ounce and settled at $1,711.80 on Nov. 1. Comex December silver lost 32.1 cents an ounce to settle at $32.731. January Nymex platinum rose $13.20 an ounce to settle at $1,582 and December Nymex palladium fell $17.10 an ounce to $635. Comex December copper rose 0.082 cent a pound to $3.5025.

Managed-money accounts raised their net-long position to 148,279 contracts by adding 4,922 gross longs and cutting 4,511 gross shorts. This is the biggest net-long position they’ve had since mid-September.

The producer and swap dealer categories showed these market participants added to their net-short positions in gold, cutting back on gross longs and adding gross shorts.

Several analysts who follow the commitment of traders reports suggested that tactical investors could be rebuilding their long positions for gold.

Citi Futures Perspective analysts said there’s plenty of room for more buying, and suggested that the current set-up “looks similar to February 2011 on the eve of a 10-week buying spree.”

In the legacy report, large speculators, known as non-commercials, increased gross longs by 3,441 contracts and lowered gross shorts by 6,272 contracts, pushing up their net-long position to 178,056 contracts. This was also the largest since mid-September. Commercial traders decreased gross longs and increased gross shorts, leaving them with a bigger net-short position.

Managed-money accounts added to longs and cut shorts in silver, increasing their net-long for silver to 13,261, the biggest position they’ve held since late September. They raised gross longs by 669 contracts and cut gross shorts by 486 contracts.

Producers in the silver report added both gross longs and shorts, but added more shorts to up their net-short position. Meanwhile, swap dealers accumulated longs and exited shorts, lowering their net-short position.

The speculator category in the legacy report showed an increase in gross longs of 385 contracts and a cut in gross shorts of 1,103 contracts, meaning the net-long for silver rose to 17,779 contracts. In the legacy report, commercials subtracted from their net-short position in silver, having added more gross longs than gross shorts.

“Stronger investor risk appetite sends silver investors scrambling to cover their short exposure, but they avoid building large long positions,” said TD Securities.

Activity by speculators was mixed in the platinum group metals. In the disaggregated report, managed-money accounts are now net-long 13,275 contracts in platinum, as they added gross longs and cut shorts.  In palladium, managed-money accounts whittled away at gross longs and slightly increased shorts, deflating the net-long to 6,284 contracts.

In the legacy report for platinum, non-commercials cut short contracts and added to long contracts, raising the net-long position for funds to 21,101. Commercials remain net-short, having raised both gross longs and shorts, but added more shorts. Palladium speculators in the legacy report whittled away both gross longs and shorts, but sliced more shorts, which raised their net- long position to 7,124 contracts. Commercials are still net-short, having added both gross longs and shorts, but adding more shorts.

Robin Bhar, senior metals analyst at Credit Agricole CIB, said platinum’s rise in the speculative net long position was on the back of short covering and fresh buying. Both metals are benefitting from supportive news on auto sales, but in the end, palladium may prove to see more gains.

“Positive data on U.S. vehicle sales in October coupled with more encouraging newsflow out of the eurozone in recent days has helped to buoy prices amid a risk-on tone in markets. Should this risk-on tone continue, we expect sister-metal platinum to outperform on perceived better fundamentals,” he said.

Managed-money accounts continued to lower their net-short position in copper. Funds cut on both sides, but modestly cut gross longs and sliced gross shorts, reducing their net short position to 919 contracts.

Speculators in the legacy report returned to being net-long copper as they slightly added to gross longs and eliminated gross shorts, pushing them to be net long by 1,825 contracts.

For further information, see the CFTC website at: http://www.cftc.gov/MarketReports/CommitmentsofTraders/index.htm