Gold jumps to US$1,291 an ounce, fuelled by hedge-fund buying - Proactiveinvestors (AU)

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Gold jumps to US$1,291 an ounce, fuelled by hedge-fund buying

Monday, July 15, 2013 by Proactive Investors

Gold jumps to US$1,291 an ounce, fuelled by hedge-fund buying

The lustre continues to return to the gold sector as hedge funds increase positions, with the yellow metal strengthening in the spot market - building on last week's 5.4% futures market jump to US$1,277.60 an ounce on Comex, the most since October 2011.

Data from the U.S. Commodity Futures Trading Commission for July 9 showed that speculators increased their net-long positions over 4% to 35,691 futures and options, as Federal Reserve chairman Ben Bernanke reduced investor expectations of a tapering in stimulus.

Spot gold is currently trading up 0.5% to US$1291, which equates to around A$1420 an ounce, with the fall in the Australian dollar against the U.S. providing support for domestic Australian producers.

Also providing support for bullion is the retail buying in China is understood to have rebounded in early July as gold prices fell.

As bullion fell to a 34-month low in June, buyers of the physical metal in bars, coins a jewellery jumped, and in another bullish signal the cost of borrowing gold pushed near a five-year high in London.

 

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