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Gold is seeing a Fed-induced short squeeze, can it last – Kitco NEWS

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(Kitco News) – Sentiment is quickly shifting in gold and silver as hedge funds continue to increase their bearish bets ahead of the Federal Reserve’s monetary policy decision last week, according to data from the Commodity Futures Trading Commission.

While the latest Commitment of Traders’ reports shows a slight increase in bearish sentiment in gold and silver, some analysts note that the data is backward looking as prices have recovered, trading at a three-week high.

Analysts note that gold is seeing a relief rally as investors and traders expected the Federal Reserve to be much more hawkish last week. Analysts said that although the U.S. central bank is maintaining its aggressive tightening posture, there has been a slight shift in its stance.

Federal Reserve Chair Jerome Powell said that the central bank would be appropriate to slow the pace of rate hikes as the economy starts to react to its aggressive monetary policy.

“After the behemoth liquidations seen of late, and with Fedspeak seeing the market move away from pricing a 100bp hike, long positioning in the yellow metal quickly bounced back after prices breached the $1700/oz level. Furthermore, with the Fed raising rates 75bp, and Chair Powell noting the Fed could slow the pace of its hike at future meetings, gold bugs have received further respite as the resulting short covering has seen prices surge to end the week,” said commodity analysts at TD Securities. 

The CFTC disaggregated Commitments of Traders report for the week ending July 19 showed money managers increased their speculative gross long positions in Comex gold futures by 1,160 contracts to 92,216. At the same time, short positions rose at a faster clip, by 1,515 contracts to 111,309.

Gold’s net short positioning increased by 19,093 contracts. During the survey period, gold prices briefly dropped below $1,700, hitting a one-year low. The gold market has seen its bearish positioning increase for the last five weeks. However, analysts noted that gold looked overbought and ripe for a short squeeze.

TD Securities, said that although prices have room to move higher, they have taken a tactical short position in gold as the market looks overbought following the Fed bounce.

“We enter into a tactical short position in gold, anticipating that a repricing in Fed expectations will exacerbate ongoing outflows in the yellow metal, leading to lower prices,” the analysts said.

In a recent interview with Kitco News, Phillip Streible, chief market strategist at Blue Line Futures, said he would look at taking profits as gold prices pushed closer to $1,800 an ounce.

Streible added that markets could be a little too early in anticipating a pivot from the U.S. central bank. He noted that the latest inflation data shows consumer prices remain elevated, which could force the Fed to maintain its aggressive stance longer than expected.

Along with gold, hedge funds remain aggressively bearish on silver. The disaggregated report showed that money-managed speculative gross long positions in Comex silver futures rose by 310 contracts to 36,721. At the same time, short positions rose by 4,087 contracts to 54,539.

Silver’s positioning is net short by 17,818, up 26% from the previous week. During the survey period, silver prices held support at $18 an ounce.

Similar to gold, silver has seen a solid bounce following last week’s interest rate hike. Although the gold/silver ratio has dropped from its two-year high, it remains elevated at around 87 points. 

Although silver prices are currently trading solidly above $20 an ounce, some analysts are concerned that the rally is not sustainable as the threat of a recession grows.

A recession would lead to lower industrial use for silver, which represents more than 50% of the precious metal’s demand.

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Stop Asking Your Interviewer Cliché Questions

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Most job search advice is cookie-cutter. The advice you’re following is almost certainly the same advice other job seekers follow, making you just another candidate following the same script.

In today’s hyper-competitive job market, standing out is critical, a challenge most job seekers struggle with. Instead of relying on generic questions recommended by self-proclaimed career coaches, which often lead to a forgettable interview, ask unique, thought-provoking questions that’ll spark engaging conversations and leave a lasting impression.

English philosopher Francis Bacon once said, “A prudent question is one half of wisdom.”

The questions you ask convey the following:

  • Your level of interest in the company and the role.
  • Contributing to your employer’s success is essential.
  • You desire a cultural fit.

Here are the top four questions experts recommend candidates ask; hence, they’ve become cliché questions you should avoid asking:

  • “What are the key responsibilities of this position?”

Most likely, the job description answers this question. Therefore, asking this question indicates you didn’t read the job description. If you require clarification, ask, “How many outbound calls will I be required to make daily?” “What will be my monthly revenue target?”

  • “What does a typical day look like?”

Although it’s important to understand day-to-day expectations, this question tends to elicit vague responses and rarely leads to a deeper conversation. Don’t focus on what your day will look like; instead, focus on being clear on the results you need to deliver. Nobody I know has ever been fired for not following a “typical day.” However, I know several people who were fired for failing to meet expectations. Before accepting a job offer, ensure you’re capable of meeting the employer’s expectations.

  • “How would you describe the company culture?”

Asking this question screams, “I read somewhere to ask this question.” There are much better ways to research a company’s culture, such as speaking to current and former employees, reading online reviews and news articles. Furthermore, since your interviewer works for the company, they’re presumably comfortable with the culture. Do you expect your interviewer to give you the brutal truth? “Be careful of Craig; get on his bad side, and he’ll make your life miserable.” “Bob is close to retirement. I give him lots of slack, which the rest of the team needs to pick up.”

Truism: No matter how much due diligence you do, only when you start working for the employer will you experience and, therefore, know their culture firsthand.

  • “What opportunities are there for professional development?”

When asked this question, I immediately think the candidate cares more about gaining than contributing, a showstopper. Managing your career is your responsibility, not your employer’s.

Cliché questions don’t impress hiring managers, nor will they differentiate you from your competition. To transform your interaction with your interviewer from a Q&A session into a dynamic discussion, ask unique, insightful questions.

Here are my four go-to questions—I have many moreto accomplish this:

  • “Describe your management style. How will you manage me?”

This question gives your interviewer the opportunity to talk about themselves, which we all love doing. As well, being in sync with my boss is extremely important to me. The management style of who’ll be my boss is a determining factor in whether or not I’ll accept the job.

  • “What is the one thing I should never do that’ll piss you off and possibly damage our working relationship beyond repair?”

This question also allows me to determine whether I and my to-be boss would be in sync. Sometimes I ask, “What are your pet peeves?”

  • “When I join the team, what would be the most important contribution you’d want to see from me in the first six months?”

Setting myself up for failure is the last thing I want. As I mentioned, focus on the results you need to produce and timelines. How realistic are the expectations? It’s never about the question; it’s about what you want to know. It’s important to know whether you’ll be able to meet or even exceed your new boss’s expectations.

  • “If I wanted to sell you on an idea or suggestion, what do you need to know?”

Years ago, a candidate asked me this question. I was impressed he wasn’t looking just to put in time; he was looking for how he could be a contributing employee. Every time I ask this question, it leads to an in-depth discussion.

Other questions I’ve asked:

 

  • “What keeps you up at night?”
  • “If you were to leave this company, who would follow?”
  • “How do you handle an employee making a mistake?”
  • “If you were to give a Ted Talk, what topic would you talk about?”
  • “What are three highly valued skills at [company] that I should master to advance?”
  • “What are the informal expectations of the role?”
  • “What is one misconception people have about you [or the company]?”

 

Your questions reveal a great deal about your motivations, drive to make a meaningful impact on the business, and a chance to morph the questioning into a conversation. Cliché questions don’t lead to meaningful discussions, whereas unique, thought-provoking questions do and, in turn, make you memorable.

_____________________________________________________________________

 

Nick Kossovan, a well-seasoned veteran of the corporate landscape, offers “unsweetened” job search advice. You can send Nick your questions to artoffindingwork@gmail.com.

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Canadian Natural Resources reports $2.27-billion third-quarter profit

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CALGARY – Canadian Natural Resources Ltd. reported a third-quarter profit of $2.27 billion, down from $2.34 billion in the same quarter last year.

The company says the profit amounted to $1.06 per diluted share for the quarter that ended Sept. 30 compared with $1.06 per diluted share a year earlier.

Product sales totalled $10.40 billion, down from $11.76 billion in the same quarter last year.

Daily production for the quarter averaged 1,363,086 barrels of oil equivalent per day, down from 1,393,614 a year ago.

On an adjusted basis, Canadian Natural says it earned 97 cents per diluted share for the quarter, down from an adjusted profit of $1.30 per diluted share in the same quarter last year.

The average analyst estimate had been for a profit of 90 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Oct. 31, 2024.

Companies in this story: (TSX:CNQ)

The Canadian Press. All rights reserved.

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Cenovus Energy reports $820M Q3 profit, down from $1.86B a year ago

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CALGARY – Cenovus Energy Inc. reported its third-quarter profit fell compared with a year as its revenue edged lower.

The company says it earned $820 million or 42 cents per diluted share for the quarter ended Sept. 30, down from $1.86 billion or 97 cents per diluted share a year earlier.

Revenue for the quarter totalled $14.25 billion, down from $14.58 billion in the same quarter last year.

Total upstream production in the quarter amounted to 771,300 barrels of oil equivalent per day, down from 797,000 a year earlier.

Total downstream throughput was 642,900 barrels per day compared with 664,300 in the same quarter last year.

On an adjusted basis, Cenovus says its funds flow amounted to $1.05 per diluted share in its latest quarter, down from adjusted funds flow of $1.81 per diluted share a year earlier.

This report by The Canadian Press was first published Oct. 31, 2024.

Companies in this story: (TSX:CVE)

The Canadian Press. All rights reserved.

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