Gold Bulls Strengthen as Wagers Hit $131 Billion

'Gold traders are the most bullish in four months after investors accumulated more metal than ever and hedge funds raised bets on gains to a five-month high.
Sixteen of 23 analysts surveyed by Bloomberg expect prices to gain next week and one was neutral, the highest proportion since Nov. 11. Investors increased their holdings in exchange- traded products backed by bullion for seven consecutive weeks and now hold 2,407 metric tons valued at $131 billion, data compiled by Bloomberg show.
Demand for gold is strengthening as European leaders seek to contain the region’s debt crisis and governments from the U.S. to the U.K. keep interest rates at all-time lows to shore up growth. The Federal Reserve and Bank of England have bought debt and the European Central Bank offered unlimited three-year loans to the region’s lenders, actions that spurred some investors to buy gold as protection against inflation.'

http://www.bloomberg.com/news/2012-...ion-wagers-reach-131-billion-commodities.html

 

I watched with complete disbelief when it touched 1680 on Friday .
I wanted desperately to buy , buy , buy , but I am in at maximum already .
Should have made a three day gamble for some healthy pocket money but finally decided I needed to be more boring and sensible at my age .
I will spit blood if it is around 1750 by Wednesday evening .

 

I still say gold will just continue its slow but steady increase for the next little while....that is until the currency crisis hits!

 

Good luck with that fantasy...



25% off it's highs. Are you going to ride it to the bottom?

 

The markets are spooked and are awaiting a definitive outcome regarding Greece. The situation in Europe has deteriorated to such a point that the US dollar is actually being seen as a safe haven as people take money out of risky assets. That is obviously bad for precious metals. In the short term I think the metals will trade in a range until Greece inevitably leaves the Euro, which could cause a crash akin to 2008. We could have bank runs, all sorts of chaos. At that point the powers will launch a massive round of QE, because they won’t need an excuse by that time. The rebound in the price of Gold and Silver due to this will be off the charts.

Again, I'm no expert by any means but as far as metals go traders are wary and don't want to commit until they can see the lay of the land a bit more clearly. Regardless of what occurs it's going to be seismic, as will the volatility. Price swings of 2-3% a day in Silver are already the norm, before any of these events occur.