Gold traders bullish as investors' bullion holdings rise to a record high
Fourteen of 26 analysts surveyed by Bloomberg expect gold prices to rise next week on mounting speculation central banks will add stimulus to bolster economic growth.
Fourteen of 26 analysts surveyed by Bloomberg expect prices to rise next week, nine were bearish and three were neutral. Investors boosted holdings in exchange-traded products (ETP) to an all-time high of 2,585.1 tonne last week, valued at $142.4 billion, data compiled by Bloomberg show. Hedge funds' bets on a rally are near the biggest in more than a year, according to US Commodity Futures Trading Commission data.
Central banks from Europe to China to the US have pledged to do more to boost economies. The yen reached a four-month low versus the dollar this week on speculation the Bank of Japan will further expand stimulus and the Federal Reserve said it plans to continue buying bonds. Gold rose 70% as the Fed bought $2.3 trillion of debt in two rounds of quantitative easing from December 2008 through June 2011.
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