"Hedge funds cut bets on a rally in gold by the most since 2007
and became the most bearish ever on sugar and coffee as concern
that the Federal Reserve will slow U.S. stimulus programs drove
prices for raw materials to the biggest loss this year," Bloomberg
It reported: "Money managers and other large speculators reduced
their net-long position in gold futures and options by 40% in the
week ended Feb. 19 to 42,318, the biggest drop since July 31, 2007,
U.S. Commodity Futures Trading Commission data show. Wagers across
18 U.S. raw materials tumbled to the lowest since December 2011 as
investors' net-short positions for sugar and coffee hit record
highs. Bullish corn wagers fell the most since June 2010.
It said: "Global holdings of exchange-traded products backed by
gold tumbled 1.6% last week, the most since August 2011, after
minutes of a Fed policy meeting showed several officials said the
central bank should be ready to vary the pace of their monthly bond
purchases. The Standard & Poor's GSCI Spot Index of 24
commodities sank 2.6%, the most since Dec. 7. The gauge surged 85%
in the four years through Dec. 31 as the Fed expanded its balance
sheet to more than $3 trillion."
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