Hedge funds raised bullish gold wagers to the highest in eight weeks as signs of stronger Chinese demand drove prices to the longest rally since August. Goldman Sachs Group Inc. says the gains will be short-lived.
A number of readers and bloggers have recently suggested there must be collusion between America and China over the transfer of physical gold from Western capital markets. They assume that governments know what they are doing, so there is a bigger game afoot of which we are unaware.
Deutsche Bank AG will withdraw from participating in setting gold and silver benchmarks in London after Europe’s top investment bank joined JPMorgan Chase & Co. and Morgan Stanley in cutting back on commodities.
It is again quite confusing for gold fundamentals as it sounds like the Fed has a plan in place for tapering regardless of any economic data, whether it be jobs, inflation, consumer confidence, retail sales or any other type of economic data releases.