Big selloff: In a week, $21billion positions in commodities cut

Positions were cut by $21 billion during the week to August 9, the biggest seven day sell-off in at least a year and a half. The calculations were made by Reuters, based on the US Commodity Futures Trading Commission’s weekly Commitment of Traders report.

Excluding some $6 billion of profit taking in US gold futures and options, managed-money funds — such as hedge funds and proprietary traders — cut their overall net long holdings in 21 other commodities by around $15 billion.

The total value of long positions came to $93 billion, the lowest level in five weeks.

Although an imperfect gauge, the data - based on futures and options positions - captures most of the recent rout in global risk assets, as gloomy economic indicators and a downgrade of the US debt rating triggered a crisis of confidence.

Despite risk aversion gripping the financial community, big funds were more sellers than buyers of gold — traditionally perceived as a safe haven — as prices fluctuated.

Traders sold off $6 billion of bullish bets on the market after their net long positions had reached a record high in the previous week.