Speculators turn bullish on Gold
Mumbai-India (Oct 20) A slide in the global equity markets coupled with fears of a global growth slowdown led the speculators to turn bullish on Gold for the first time in nine weeks.
Gold prices rose 1.4% last week, extending the previous week’s gain of 2.4%. The back-to-back weekly gains were driven by the downward revision of the global growth forecast by the International Monetary Fund (IMF), which led to a rout in the stock markets especially in the Europe and the US.
Consequently, net-long position in gold jumped 39 percent to 51,994 futures and options contracts in the week ended Oct. 14. As per the Commodity Futures Trading Commission (CFTC) data, the rise in gold long positions is the biggest since June 24. Meanwhile, the data showed that the bearish bets fell by 1.7%.