Gold bulls raise positions most in month on stimulus

Summary: Net-long positions in gold, which are bullish bets on the metal, rose an astounding 12% between Sept. 17 and Sept. 24. According to CFTC data, long bets gained 1.8% while shorts (bearish) fell by 18%. Driving these market moves was the Fed’s surprise announcement that it considered economic data to be too weak to start slowing its monetary stimulus. While gold has risen 8.2% in the 3rd quarter of 2013, it’s still off by 21% for the year and is set for its first yearly loss since 2000. A weekly survey by Bloomberg shows bullish sentiment slowly returning – 17 traders and analysts surveyed believe gold will be higher this week, while 7 are bearish and 3 are neutral. This week’s survey is the 2nd consecutive bullish. Read more…