Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Gold price: Hedge funds bullish bets jump 57%

Gold price: Hedge funds bullish bets jump 57%

Gold advanced to an eight-week high on Monday in relatively brisk holiday trading in the US after  government data showed hedge funds increasing bullish bets for the first time in nine weeks.

Gold for delivery in February, the most active contract on the Comex market in New York, hit a high of $1,208.70 in early dealings, up 1% from Friday's close before giving up some of those gains. If the metal manages to close above the psychologically important $1,200 an ounce level it would be the first time since November 22.

Overall bullish positioning is still 80% below July's all-time record
Gold is up $80 an ounce since hitting post-US election lows mid-December, but remains down just under $130 from an initial but brief surge on election night as results showed a likely victory for Trump in the presidential race.

After relentless cutting back of bullish bets hedge funds or so-called managed money investors in gold futures and options grew their long positions – bets that gold will trade higher in future –  by 57% last week.

Derivatives traders added to longs and cut back shorts – bets that gold can be bought back cheaper in future – lifting the net position to 5.4 million ounces from one year-lows hit at the beginning of 2017 trading.

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