Hedge funds’ bullish bets on gold jump to four-year high
Hedge funds and other large speculators boosted their net-long position in gold.
Another round of positive global economic news sent gold back above the $1,400 an ounce level on Tuesday.
By midday the yellow metal was trading at $1,412 on Comex in New York, up around 1.1% or $16 from Monday’s close.
Goldman Sachs raised its second-half 2013 gold price forecast to $1,388 from $1,300 an ounce with the investment bank saying “the recent uptick is a result of investors positioning themselves for an increase in inflation rates”.
The threat of military action by the US and some of its allies in Syria and a widening crisis in emerging markets have also boosted gold status as a safe haven asset.
The prospect of a protracted industry-wide gold mining strike in South Africa has also provided a floor for the gold price. The African nation’s gold output has fallen steadily over the past decade producing roughly 170 tonnes last year.
Gold gained 5.7% in August, a second month of gains, and hit a three-month intra-day high of $1,434 last Wednesday.
Gold has also rallied more than 16% from the intra-day low of $1,182.60 an ounce hit on June 28.
Silver futures tracked gold higher adding over 4% in New York to $24.47 an ounce. Silver investors enjoyed a fantastic August with the volatile metal gaining 19.5% over the month.
Platinum for delivery in October gained less than 1% to $1,529.90 an ounce, but December palladium bucked the trend falling as much as 2.8% to below $720 an ounce.
