Gold Back Near $1180 on U.S. Dollar Gains

Holdings in gold contracts reached the highest in almost 22 months as investors added to bets that prices will drop. Futures fell.

The aggregate number of futures contracts yet to be closed, liquidated or delivered rose to 459,657 yesterday, the highest since Jan. 22, 2013. Money managers have boosted their short wagers to the highest in four weeks, while long holdings dropped to the lowest since January, government data show.

Investor appetite for bullion has ebbed as the dollar jumped to the highest since 2009 against a 10-currency basket and the Federal Reserve moved closer to its first U.S. interest-rate increase in eight years, cutting demand for the metal as an inflation hedge. Gold futures slumped to the lowest in four years this month, heading for a second straight annual loss.

Bloomberg

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