Hedge funds’ bullish bets on gold jump to four-year high
Hedge funds and other large speculators boosted their net-long position in gold.
On Friday, gold’s post-Fed rally began to lose momentum as a measure of calm returned to equity and bond markets.
In late afternoon dealings on the Comex market in New York, gold futures contracts with December delivery were trading down $8.30 or 0.7% at $1,145.50 in robust volumes.
On Thursday gold closed above the $1,150 resistance level for the first time since August 24. Gold is up nearly 5% from where it was trading before the Fed’s hold on rates, which haven’t been lifted since June 2006.
Gold strong performance this week encouraged investors in physically-backed gold exchange traded funds to jump back into the market.
Holdings in SPDR Gold Shares (NYSEARCA: GLD) – which accounts for more than 40% of the total ETFs traded – jumped nearly 4 tonnes on Friday. Since Monday more than 9.5 tonnes flowed into the fund, the best week of inflows since the end of January.
At the close on Friday, GLD holdings stood at 684.1 tonnes or 21.9m ounces worth $25.2 billion, still down 25 tonnes since the start of the year.
Gold holdings in the trust peaked in December 2012 at 1,353 tonnes or 43.5 million ounces.
2 Comments
Gene Byrge
Physical will always dominate speculative. Grab some of the REAL thing!
not coke
Kenneth Viney
9 tons of paper does not = 9 tons of gold. Stop spinning. Shortly there will be a two tear market for AU, physical gold and paper promises to deliver. Remember what President Reagan said ” There is no gold in Ft. Knox that belongs to the Govt.” The longer you spin the longer it will take.