Gold Wagers on Rally Jump to Five-Month High on Stimulus – Bloomberg 09-03-12

Salient to Investors:

Bets on rising gold prices rose to the highest since March.

Combined bets on 18 U.S. commodities is still near the highest in 15 months.

Dan Denbow at USAA Precious Metals & Minerals Fund said putting more money into the economy is always good news for gold

James Dailey at TEAM Financial Asset Management said central bank action may not be enough to stave off slowing global growth that will crimp demand for commodities including copper.

Chad Morganlander at Stifel Nicolaus said the global economy is decelerating, which will trump any type of monetization, and will eventually catch up to prices in the not-too-distant future.

EPFR Global said inflows to raw-material funds saw its fourth gain in five weeks, almost all the gains were attributable to gold and precious-metal funds.

John Paulson raised his stake in the SPDR Gold Trust by 26 percent in Q2, while George Soros more than doubled his holdings.

Michael Cuggino at Pacific Heights Asset Management said that a worldwide monetary bias toward liquidity, easier money, quantitative easing and other measures is bullish for commodity prices.

Read the full article at http://www.bloomberg.com/news/2012-09-02/gold-wagers-jump-to-5-month-high-as-fed-spurs-rally-commodities.html