Gold Bears Retreat as Prices Reach Two-Month High: Commodities
The net-bullish position rose 18 percent to 56,604 futures and options by Aug. 13, as the 17 percent contraction in short bets exceeded the 3 percent drop in long wagers, U.S. Commodity Futures Trading Commission data show. Net-long holdings across 18 U.S.-traded commodities expanded 23 percent as the position in silver more than doubled and investors turned positive on copper for the first time since February.
Gold tumbled a record 23 percent last quarter as some investors lost faith in the metal as a store of value. The rout spurred losses for billionaire John Paulson, who joined George Soros in selling bullion holdings in three months ended June 30, government filings showed last week. Lower prices spurred demand in India and China, the top buyers, driving global coin and bar purchases to record in the second quarter and jewelry purchases to the highest since 2008, the World Gold Council said Aug. 15.
“People became more interested in holding gold as the price dropped,’ said Tom Stringfellow, the president of San Antonio-based Frost Investment Advisors LLC, which manages about $9 billion. ‘‘Sometimes it’s too far too fast, and in this market, there’s money always looking for relative value.”
Read More: www.bloomberg.com/news/2013-08-18/gold-bears-retreat-as-prices-reach-two-month-high-commodities.html