Hedge funds remain to add bearish wagers on gold. Yet, analysts advise that the downside is limited while the market turns out to be a good-looking contrarian move.

The CFTC report ending July 19 shows that money managers have lowered the hypocritical gross long position in the Comex gold futures contracts by 613, totaling 91,056. Yet, short positions have risen by 11,992 agreements up to 109,794.

Hence, the gold’s net short position has increased as well. Moreover, the gold prices tested around $1,700 an ounce during that survey period. Thus, the bearish position has been at the highest level. Still, gold remained in a solid downtrend when the FRS raised interest rates to help slow down the economy.

Yet, central banks plan more interest rate hikes by 75 basis points expected to rise by year-end between 3.5% to 3.75%. Yet, analysts also advise that the rate hikes are priced into the market. In turn, it limits the downward spiraling of gold for the rest of the year.

With the limits of gold prices not spiraling down, we still see many people dipping into their savings. But there are other ways to make ends meet. One of them is to visit a pawn shop Melbourne broker to sell some of your scrap gold lying around at home and not used.

When doing this, you can receive cash for your gold instead of using up your savings to close up all those unexpected holes. But that is not all, as there might be some good news on the horizon. For example, another analyst noted that the slowing economy with a possible recession can cause the Fed to slow down these rate hikes.

What does this mean? It means that relenting the rake hikes will be suitable for gold. According to Société Générale, a commodity analyst said that the gold market remains at a bearing $21 billion position.

The analyst noted the market remains vulnerable to a short covering. The last time that gold’s net placing was so bearish, it turned around fast, going on a month-long rally, pushing gold prices to a record high above the 2,000 dollars an ounce mark.

While it does not guarantee anything, this benchmark gold is not yet at the top. It is not the only precious metal that is vulnerable as silver is also to the short covering. The report also showed that silver futures fell with 684 contracts down to 36,411, and the short position rose to 50,452.

Still, with the interest hikes and the prices of precious metals moving up and down, people are struggling to make ends meet. So, if you find yourself in the same position as many others, there is a way out.

We recommend you look at your unwanted gold or silver jewellery at home. Then sort them into the metal purity and weight, and check the precious metal prices on a pawn shop Melbourne broker website.

You can visit them in person to have your gold or silver jewellery estimated for a buyback offer instead of taking out loans or depleting your savings account. Look on the bright side. You will receive fast cash.