Gold Forecast Based on The Commitments of Traders: gold prices will rise?
Data from the Commodity Futures Trading Commission’s Commitments of Traders report released Friday showed that managed money, which include hedge funds and commodity trading advisors, took advantage of the recent, steep drop in gold prices to cut down their “short” bets — bets that prices will go lower.
Fund managers and other speculators increased net-long positions in gold by 9.8 percent to 61,579 futures and options in the week ended April 16, U.S. Commodity Futures Trading Commission data show. Investors turned bullish on silver for the first time in three weeks. Wagers on higher prices across 18 U.S.-traded raw materials climbed 5.1 percent to 453,467 contracts, the first gain in three weeks.
Gold futures slumped 7 percent to $1,395.60 an ounce on the Comex inNew Yorklast week, the biggest drop since September 2011. The Standard & Poor’s GSCI Spot Index of 24 raw materials fell 2.5 percent. The MSCI All-Country World Index of equities slid 2.2 percent and the dollar rose 0.5 percent against a basket of six trading partners. Treasuries rose 0.1 percent, a Bank of America Corp. index shows. Bullion for June delivery gained 0.8 percent to $1,407 at 8:38 a.m. inSingaporetoday.
Since reaching $1,321.50 on April 16, the lowest since January 2011, bullion rebounded 5.6 percent. The China Gold Association said retail sales surged April 15 and 16. Imports by India may jump by 36 percent in the three months through June compared with a year earlier, the Bombay Bullion Association Ltd. said April 18. The U.S. Mint sold 167,500 ounces so far in April, heading for the biggest monthly total since May 2010..
