Market Chatter: Gold Bets Cut by Most Since 2007 as Sugar Bears Grow

By
A A A

"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 reported.

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."



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

Copyright (C) 2014 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.


This article appears in: Investing , Commodities

Referenced Stocks:

MT Newswires

MT Newswires

More from MT Newswires:

Related Videos

Stocks

Referenced

Most Active by Volume

24,303,290
  • $103.59 ▲ 1.06%
23,118,308
  • $10.48 ▲ 12.09%
20,725,888
  • $16.155 ▲ 0.40%
16,098,173
  • $19.75 ▲ 0.92%
14,886,951
  • $12.5459 ▲ 7.41%
14,527,015
  • $51 ▲ 2.51%
14,244,281
  • $3.635 ▲ 0.14%
13,598,649
  • $75.63 ▲ 1.08%
As of 9/2/2014, 11:33 AM

Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com