The gold futures reached $1,343.60 on Aug. 12, the highest level in about three weeks. The speculators net combined shorts positions in gold declined by a staggering 23,518 contracts in the week ending Aug. 6.
The CFTC managed money combined total positions in gold jumped to 70,067 contracts as of July 23 from a recent low of 31,197 contracts as of June 25. The speculators believe that the Fed is unlikely to hurry the tapering.
Hedge funds raised wagers on a gold rally as speculation that the Federal Reserve will hold off on curbing stimulus drove prices toward the biggest gain in 18 months. Goldman Sachs Group Inc. expects the rally to reverse.
This week gold moved firmly above the $1,300 level, which with expiring 1300 call options had been a line in the sand. Last week’s Commitment of Traders report showed that some of the hedge funds have begun closing their shorts,
Hedge funds raised bets on higher gold prices for a second week as comments from Federal Reserve Chairman Ben S. Bernanke damped expectations for an imminent tapering of stimulus. Futures rose the most since 2011.
Last week August 2013 RBOB opened at $2.9015 and closed the week at $3.1175. On July 1, gasoline opened at $2.7101 and since then we have only seen one red candle in July. Could we see $3.40 before all is said and done?