Hedge funds increased their bets together with other speculators on the rise of gold prices to its highest levels in the past six months. There have been signs that the US growth is slowing down, causing the value of gold to jump over the USD1,400 per ounce, its highest since June earlier this year.
By August 20, the US Commodity Futures Trading Commission data indicated that the net long position increased by 29% to 73,216 futures and options. Short contracts declined for a second straight week, its lowest since February 12. The net-bullish holdings in eighteen U.S. traded commodities rose 34%, its highest jump since July 2010. This was attributed to the bets and hedges on copper and soybeans, which have doubled in value.
Gold had rallied by 18% from its previous 34 month low back in June. Futures on the other hand increaaed by 0.1% to USD1,397.50 on the Commodities Exchange in New York. Laat week, a 1.8% gain was registered, raising the value of a troy ounce to USD1,395.80. By August 23, the spot gold prices had surpassed the USD1,400 level.
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