Gold Bears Wager Wrong Again as Fed Talk Favors Bulls

Bloomberg, April 14: Bearish speculators misjudged gold bets again as the release of Federal Reserve minutes extended this month’s rally in bullion. Money managers cut their net-long position to the lowest since February in the week ended April 8. The minutes of the Fed’s March meeting the next day played down forecasts for higher rates, and gold had its biggest weekly gain in a month.

Futures climbed 1.2 percent to $1,319 an ounce last week, extending this year’s rally to 9.7 percent on the Comex in New York. The Standard & Poor’s GSCI Spot Index of 24 commodities advanced 1.1 percent last week, while the MSCI All-Country World Index of equities fell 1.9 percent and the Bloomberg Treasury Bond Index rose 0.7 percent. Gold futures for June delivery gained 0.6 percent to close at $1,327.50 an ounce today.