Hedge Fund Gold Bets at Six-Month High After Rally: Commodities

The net-long position increased 29 percent to 73,216 futures and options by Aug. 20, U.S. Commodity Futures Trading Commission data show. Short contracts fell for a second week and to the lowest since Feb. 12. Net-bullish holdings across 18 U.S.-traded commodities jumped 34 percent, the most since July 2010, as wagers on copper and soybeans more than doubled.

Sales of newly built homes in the U.S. declined more than 13 percent in July and consumer confidence fell in the week ended Aug. 18, signaling a pause in economic expansion. The reports increased speculation the Federal Reserve will look for further signs of growth before easing stimulus. Gold rallied 18 percent from a 34-month low in June as Asian demand for jewelry strengthened and investors speculated the U.S. central bank will taper its monthly bond buying.

Read More: www.businessweek.com/news/2013-08-25/hedge-fund-gold-bets-at-six-month-high-after-rally-commodities