Hedge funds’ bullish bets on gold jump to four-year high
Hedge funds and other large speculators boosted their net-long position in gold.
Chart from Kitco
Gold lost $25.25 after strong payroll numbers were announced with the yellow metal settling to $1,286 per ounce as of noon ET.
Spot silver was also down to $21.35 ounce, a four-week low.
The expectation for the October jobs report was for 120,000 but the total non-farm payroll was 204,000. The unemployment rate was little changed at 7.3 percent.
August and September payroll data was also revised upward.
“The change in total nonfarm payroll employment for August was revised from +193,000 to +238,000, and the change for September was revised from +148,000 to +163,000. With these revisions, employment gains in August and September combined were 60,000 higher than previously reported,” wrote the The Bureau of Labor Statistics in its press release.
Employment bright spots were leisure and hospitality, retail trade, professional and technical services, manufacturing and health care.
And the sunnier data may require the Federal Reserve to taper sooner.
Comments
geeee
The Fed will absolutely not taper before Yellen takes over in Mar 2014 and this at the earliest. No significant organization probably in history ever made changes when someone is going out the door while someone new is coming in the door. This is too funny all this debate by the NY crowd that have been wrong for years about the FED. It’s almost as laughable as how poor all FED forecasts have been for years and yet people trade or invest on this basis, truly stupid.
The Fed’s reputation is already damaged from poor foresight for years on the economy and a few false starts about QE over the last few years leading to this present open ended QE version 3. Why do you think it’s open ended because so many mistakes have occurred to date, maybe. I would suggest the FED is going to be ultra conservative on cutting back QE given what’s at stake and will want at least 4-6 months of above average data considering how many times the economy looked ready to be on it’s own over the last 5 years yet always falls short.
For me I would want 8-0 months of well above average economic numbers before pulling the trigger given what’s a stake after 5 years of trillions of money printing, huge debt burden increases and zero rates. BTW, this has all occurred while most metrics for measuring the economy have been adjusted, bastardized and made mostly useless for comparative purposes with historical norms, this refers to inflation calculations, GDP calcs, jobs calcs and debt measurement. This is what journalists should be pursuing, why do we have to change everything to make it look better, figure it out, do some real journalism.