Hedge funds and money managers raised their bullish bets in gold futures and options to the highest level since December 2012, as worries about tensions in Ukraine and China's economy boosted speculative interest for a sixth straight week, according to data from the Commodity Futures Trading Commission on Friday.
The CFTC's Commitments of Traders report in the week to March 18 also showed speculators increased net short positions in copper and cut net longs in silver. Gold investors boosted their bullish bets after Russia showed no signs of heeding Western pleas over Ukraine and formally made Crimea part of Russia. Some investors also increased bullish bets in gold ahead of policy announcements from the Federal Reserve's March meeting.
Gold traders said they will closely monitor next week's CFTC data after Fed Chair Janet Yellen said on Wednesday the central bank will probably end its massive bond-buying program this fall, and could start raising interest rates around six months later. This week gold posted a 3.3 percent loss, its biggest weekly drop since November as tensions in Ukraine eased later in the week after Putin said he had no intention to invade other parts of Ukraine.
The group, also known as managed money, increased its net long position in gold by 15,422 contracts to a net long position of 138,429 contracts, the most bullish stance since early December 2012. Speculators increased bearish bets in copper by 11,492 lots to a net short position of 21,965 contracts. The group cut 2,752 net longs in silver to a net long 18,239 lots. Speculators increased their bets in platinum by 771 to 34,905, and cut palladium longs by 487 to 20,237 contracts.
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