Gold Bulls Strongest Since August as Funds Retreat: report
Gold traders are the most bullish in 4 months as U.S. lawmakers near a deadline for budget talks, at a time when hedge funds are cutting bets on higher prices, Bloomberg reports.
Bloomberg said bullion is headed for a 12th consecutive annual gain, the longest run in at least 9 decades, as central banks from Europe to China pledge more steps to spur economic growth. Hedge funds that were the most bullish in 13 months in October have since pared wagers by 43 percent as lawmakers failed to agree on a deal to avert more than $600 billion of automatic tax increases and spending cuts scheduled to start next month.
The metal advanced 6.2% to $1,660.45 an ounce in London this year, even after heading for a third consecutive monthly drop. The Standard & Poor's GSCI gauge of 24 commodities added 0.2% and the MSCI All-Country World Index of equities climbed 13%. Treasuries returned 2.3%, a Bank of America Corp. index reportedly shows.
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