Hedge funds slash bullish wagers on gold before war jitters
Speculators have reduced net-long positions by 3.6%.
The price of gold is expected to rise to $2,941 a troy ounce over the next 12 months from the current $2,661, delegates to the London Bullion Market Association’s annual gathering predicted on Tuesday.
A poll of delegates at the LBMA conference in Miami also predicted higher prices in a year’s time for silver, platinum and palladium.
Spot gold prices are up 29% so far this year, heading for the biggest annual gain in 14 years, amid the start of US Federal Reserve interest rate cuts and geopolitical tensions. The spot price hit a record $2,685.42 per ounce on Sept. 26.
Delegates from around the world also predicted that silver prices would jump to $45 per ounce in a year’s time from around $31.46 on Tuesday. Silver prices are up 32% so far this year. Silver touched a record high of $49 per ounce in 2011.
They forecast that platinum prices would climb to $1,148 from the current $984 and palladium would edge up to $1,059 from around $1,012.
(By Polina Devitt; Editing by Will Dunham)
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Herry Luke
Informed