Speculators Lift Wagers in Longest Streak on Record: Commodities – Bloomberg 08-06-12

Salient to Investors:

Speculators increased bets on commodities for a record eighth consecutive week and double year’s low on June 5 . Hedge funds upped net-long positions in 18 U.S. futures and options by 4.9 percent. Gold holdings climbed by the most since November 2008, cocoa bets reached a one-year high.

U.S. service industries make up almost 90 percent of the U.S. economy.

Inflows to raw-material funds snapped a five-week streak of outflows.

Investors increased bullish gold bets by 35 percent in the week ended July 31, the biggest advance since Nov. 25, 2008.

Speculators increased bullish bets in agricultural commodities by 3.3 percent to the most since Sept. 6, 2011.

Money managers raised corn holdings for an eighth consecutive week, the longest increase since September 2010

Predictions:

JPMorgan Chase recommended gold on August 3, forecasting an average of $1,725 an ounce in Q4.

Walter Hellwig at BB&T Wealth Management said speculation about monetary easing coming over the next few months will continue to put a wind behind commodities.

Read the full article at http://www.bloomberg.com/news/2012-08-05/speculators-lift-wagers-in-longest-streak-on-record-commodities.html