Hedge Funds Boost Bullish Gold Bets 35%, Most In Two Months

June 3rd, 2013 by

Charting-Gold-Market

Bloomberg reports that hedge funds have increased their bullish bets on the gold market to the highest level in two months, as speculators dump short positions. Net long positions are now at 48,096 futures and options as of May 28, an increase of 35%.

A muddled forecast for the U.S. economy, including today’s shocking PMI numbers showing a sudden contraction in manufacturing output, has eased fears of any near-term decrease in Fed market intervention, which means the “money printing” continues.

Bloomberg quotes Michael Cuggino of Permanent Portfolio Family of Funds, Inc as saying “You have a lot of monetary creation going on, and while inflation is not a current threat, that doesn’t mean it’s not a threat at some point.” Some bankers are recorded as thinking that the Fed’s $85 billion a month quantitative easing program could last as long as three more years.

by David Peterson