Tags: gold | bull | currency | exchange

Gold Speculators Most Bullish in 2 Years

By    |   Tuesday, 27 Jan 2015 07:58 AM

After falling for a little more than two years, gold has moved higher for the last couple of months and that has garnered some attention from large speculators.

According to last Friday’s Commitment of Traders Report, the group is net long
162,455 contracts. That is the first time in exactly two years that the group has been net long more than 150,000 contracts.

Two years ago, gold was hovering between $1,650 and $1,700 an ounce. After the two-year decline, gold is now fighting to get back above $1,300 an ounce.

The unfortunate thing for gold bulls is that after the group was so bullish in 2013, the price fell for the next six months and it lost 28.9 percent from the third week of January to the low in June of that year.

The saving grace for gold bulls could be the current situation in the currency market.

After the Swiss National Bank halted its capped exchange rate a few weeks back, the Swiss franc rallied sharply against the euro.

The uncertainty in the foreign exchange markets has led some investors to seek the safety of gold and this has led to one of the best three-week periods the metal has experienced in several years.

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After falling for a little more than two years, gold has moved higher for the last couple of months and that has garnered some attention from large speculators.
gold, bull, currency, exchange
205
2015-58-27
Tuesday, 27 Jan 2015 07:58 AM
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