Gold Bulls Strongest Since August as Funds Retreat: Commodities – Bloomberg 12-27-12

Salient to Investors:

Gold traders are the most bullish in four months, investors bought 60 percent more this year through gold-backed ETPs versus with 2011. Gold is headed for a 12th consecutive annual gain, the longest run in at least nine decades. Nations from Brazil to Iraq to Russia are buying gold to add to reserves. Options traders are also bullish.

Hedge funds’ bets on a rally in 2012 were on average 28 percent lower than in 2011. US Mint sales of American Eagle gold coins so far this month are 49 percent less than the November total, and down 25 percent in 2012. Gold fell below its 200-day moving average last week for the first time since August.

Thorsten Proettel at Landesbank Baden Wuerttemberg said the problems seen over the last year have not disappeared, good reason to stay in gold or buy more. Goldman Sachs expects gold to peak in 2013 because of improving US growth, and to average $1,750 in 2014.

Read the full article at http://www.bloomberg.com/news/2012-12-28/gold-bulls-strongest-since-august-as-funds-retreat-commodities.html.

Click here to receive free email alerts of articles as soon as they are posted.