Bullish Gold Bets Rebound as Mideast Tensions Mount
Source: Bloomberg, Pham-Duy Nguyen (2/28/11)
"Hedge funds boosted their bullish bets on gold to the highest since December."
Managed-money funds held net-long positions, or wagers on rising prices, totaling 182,739 futures and options contracts on the Comex as of Feb. 22, up 14% from a week earlier, U.S. Commodity Futures Trading Commission data showed last week. Holdings rose for a third straight week and are the highest since Dec. 7, the day gold reached a record $1,432.50 an ounce.
The price has rallied for five straight weeks as pro-democracy uprisings spread from the Middle East to North Africa. Gold is rebounding after a plunge in January that was the biggest in more than a year. Before then, the precious metal had rallied every year for the past decade.