Bullish Wagers Plunge Most in 2012 on Greek Impasse: Commodities
By Tony C. Dreibus - May 13, 2012 4:00 PM ET
Speculators cut bets on a rally in commodities by the most since November as Greece’s struggle to form a new government and weaker-than-expected industrial output in China erased this year’s gains in raw materials.
Money managers reduced net-long positions across 18 U.S. futures and options by 19 percent to 723,239 contracts in the week ended May 8, the biggest decline since Nov. 22, Commodity Futures Trading Commission data show. The Standard & Poor’s GSCI Spot Index of 24 raw materials dropped 6.5 percent in eight sessions, the longest slide since December 2008.
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Money Flows
Investors pulled $815 million from commodity funds in the week ended May 9, according to data from Cambridge, Massachusetts-based EPFR Global, which tracks money flows. That’s the biggest outflow this year, said Cameron Brandt, the director of research for EPFR. Gold and precious-metals funds lost $467 million.
Gold is now just 1.1 percent higher this year at $1,584 an ounce in New York after erasing most of its gains. The metal will rally to $1,840 in the next six months because it remains the “currency of last resort,” Goldman Sachs Group Inc.’s commodity analysts said in a May 9 report. didn't GS predict $200.00 oil? clo
Bullish gold bets plunged 20 percent to 92,498 contracts, the lowest since December 2008, CFTC data show. Wagers on a silver rally tumbled 32 percent to 7,159, the biggest decline since late December. Gold prices dropped 3.7 percent last week, the most in two months, as the dollar rose, curbing demand for the precious metal as an alternative investment. Silver declined 5.1 percent to $28.89 an ounce.
much more:
http://www.bloomberg.com/news/2012-05-13/bullish-wagers-plunge-most-in-2012-on-greek-impasse-commodities.html
DO SOMETHING!
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