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?
On Friday we saw a large drop in corn with Sept 2013 down $0.25. This was caused by the USDA Acreage report released that day confirming the U.S. corn acreage planted at 97.4 million acres, the highest planted since 1936 when an estimated 102 million acres were planted.
Hedge funds cut wagers on a gold rally to a five-year low as a record quarterly drop drove prices below $1,200 an ounce for the first time since 2010 and Goldman Sachs Group Inc. forecast more declines.
Hedge funds cut wagers on a gold rally for the first time in three weeks on mounting speculation central banks will curb record stimulus and as this year’s slump in bullion spurred losses for billionaire John Paulson.