Gold Rises After Dollar Drop

Gold futures for February delivery jumped 2.4 percent to $1,263.90 a ounce at 9:51 a.m. on the Comex in New York, heading for the biggest gain since Oct. 17. Prices touched $1,267.50, the highest since Nov. 20.

Hedge funds and other money managers held a net-long position in gold of 26,774 futures and options in the week ended Dec. 3, U.S. Commodity Futures Trading Commission data show. Short bets rose 6.2 percent to 79,631, within 0.6 percent of the record reached in July.

Bullion is set for the first annual drop in 13 years. Some investors lost faith in the metal as a store of value amid speculation that the Federal Reserve will scale back its $85 billion in monthly bond buying as the economy improves. Data last week showed U.S. payrolls rose more than forecast in November. Policy makers next meet Dec. 17-18.

via Bloomberg

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza