Hedge funds and other big speculators in commodities have started selling gold
in a big way, trade data showed on Friday, just a month after they had
supported the precious metal amid a record tumble in its price
Just a month ago, CFTC data showed hedge funds had added to their net
long positions in US gold futures despite a record loss in bullion
prices at that time due to a broad commodities sell-off triggered by
global economic worries.
On Friday, gold fell for a seventh straight session, its longest losing
streak in four years, as the dollar rose to the highest since 2008 after
some Federal Reserve officials said the central bank should end its
stimulus for the U.S. economy.
Ultra low interest rates and hundreds of billions of dollars of Fed
stimulus money have fueled higher prices for gold and other commodities
over the past 3 years.
This year, gold's safe-haven lure been dulled by improving US economic
data, which included a May reading for consumer sentiment that stood at a
near six-year high. Money has also been rotating out of gold into
equity markets as U.S. stock prices hit record highs.
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