Precy Dumlao, Opalesque Asia:
Gold prices jumped to their highest level since 2011 as hedge funds and speculators raised their net long positions by 56% to 55,535 futures and options last week, according to data from the Commodity Futures Trading Commission (CFTC), Bloomberg reports today. And short contracts fell the most since November.
Bets are growing for a rebound in gold after its price tumbled 23% in the second quarter, says Reuters, as speculators raised their net long position in U.S. gold futures for a third straight week, adding 19,844 lots to reach a total of 55,535 contracts.
Bloomberg quotes Michael Cuggino, who manages San Francisco-based $12bn Permanent Portfolio Family of Funds Inc. as saying, "We are seeing some support for gold as Bernanke’s statements tell us that the Fed wants to see a visible improvement in economic conditions before they begin tapering. The longer-term reasons for owning gold, like capital preservation, remain as easy money will continue to flow into the system."
The report says gold prices rose by 6.7% over the past two weeks, the highest gain since November 2011. Futures gained 1.3% to $1,294 an ounce on the Comex last week, and today rose up by 2.4% to $1,325, the ......................
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