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Komfie Manalo, Opalesque Asia: The fluctuating price of gold is puzzling hedge funds; last week, they raised their net-bullish bets on the gold metal to the highest level since February, only to see the price go down to its lowest since August, reported Bloomberg.
Government data showed that gold prices fluctuated more than 12 times so far this year.
Gold futures dropped 1.7% last week to $1,162.80 an ounce on the Comex, the biggest loss since August 28, and traded at $1,165.20 on Monday. Meanwhile, hedge funds and speculators raised their gold net-long positions by 48% to 121,804 futures and options contracts as of October 20. The Commodity Futures Trading Commission (CFTC) also reported that gold long holdings jumped for the fifth straight week, the highest increase since January this year.
While few investors expect the Federal Reserve to raise interest rates when officials meet this week, more than half anticipate an increase within the next six months, trimming gold’s longer-term appeal, Bloomberg says. Gold prices usually drops when monetary policy tightens because, unlike other assets, the yellow metal does not provide interest or pay dividends.
According to data provider HFR last week, gold and oil ...................... To view our full article Click here
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