Friday, March 1, 2013

Gold in the balance


According to the CFTC, gold speculators have cut their combined futures and options net-long positions by 40 percent to 42,318 contracts in the week ending Feb. 19, approaching the low reached in September 2008.  Gold-backed ETP holdings also fell to a five-month low on Feb. 25 to 2,536.289 metric tons while large investors such as George Soros and Louis Bacon cut their gold holdings in the last quarter.  Add to this the bearish forecast on gold by Goldman Sachs – whose pronouncements on gold have tended to be accurate – and investors were given yet another reason to fear lower prices ahead for the yellow metal.

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