UPDATE 2-Speculators continue long exodus in gold, copper-CFTC

* Fund net longs in gold lowest since Dec. 2008
* Copper net longs fall by largest amount since start of April
* Length in silver cut for sixth week in a row

May 18 (Reuters) - Money managers slashed their net long positions in gold
futures and options further to fresh multiyear lows in the week of May 15 when
prices fell to critical levels, data from the Commodity Futures Trading
Commission (CFTC) showed on Friday.
The exodus, also seen to a lesser extent in copper and silver, reflects
weakening confidence in commodities markets and mounting concerns about the
euro-zone debt crisis that knocked the euro to four-month lows against the
dollar on Friday.
Hedge funds and other speculators unwound their bullish bet in gold, cutting
net length by 13,879 contracts to 78,619, building on last week's even more
vigorous cut, as bullion prices lost almost $100 to around $1,540 an ounce.
This is the smallest net long position for funds since December 2008, when
speculators were bailing out of all financial markets at the height of the
global economic crisis. It is all the more significant as some funds take a
long-only stance in gold.
Most of the net reduction was due to a rise in short positions, with 10,677
added, while 3,202 longs were taken out in the week.
On Wednesday, spot gold hit a four-month low of $1,527 an ounce, close to
critical technical support levels, triggering a spate of short covering. That
technical buying sent prices up over $60 during the next two days.
There was a dramatic cut in copper longs, too, mostly due to a build in
short positions, as investors bet on lower prices on fears about lower demand
from Europe and China, the world's largest consumer of the red metal.
Net length fell by 10,623 to 4,833 contracts. That is the largest drop since
early April. Comex copper prices fell over 7 percent in the week to May 15.
Speculators have not been short copper since the end of January.
They also reduced their silver net long positions for a sixth consecutive
week, albeit at a much small rate than previous periods. The net reduction was
466 contracts to 6,693 contracts.

FUTURES + OPTS Managed Swaps Producer
Net Chg Net Chg Net Chg
Gold 78,619 -13,879 -6,161 14214 -124,791 6,029
Silver 6,693 -466 14,896 2438 -32,626 263
Copper 4,833 -10,623 44,372 2119 -29,789 5,250

Other NonReport Open
Net Chg Net Chg Interest Chg
Gold 25,205 -3,276 27,128 -3,089 699,370 31,753
Silver 5,994 -1,342 5,044 -892 156,119 5,882
Copper -8,691 3,234 -10,725 20 148,020 3,368
=====================================================================

FUTURES ONLY Managed Swaps Producer
Net Chg Net Chg Net Chg
Gold 80,098 -10,274 -8,328 9,430 -130,589 3,108
Silver 5,703 -200 15,450 1,396 -31,358 595
Copper 4,833 -10,623 44,372 2,119 -29,747 5,265

Other NonReport Open
Net Chg Net Chg Interest Chg
Gold 34,044 1,113 24,775 -3377 422,091 4,293
Silver 5,771 -889 4,434 -902 114,208 659
Copper -8,691 3,234 -10,767 5 147,934 3,351
=====================================================================

FUTURES + OPTS FUTURES ONLY
Gold
Silver
Copper

Additional CFTC data can be found at or
or the CFTC website at