Money managers increase bullish bets on gold
Money managers have significantly increased their bullish wagers on gold, reaching the highest levels in over four years. This surge in bullish sentiment is driven by expectations for the Federal Reserve to implement earlier and more aggressive monetary easing measures in order to support the economy.
Hedge funds and other large speculators have raised their net-long positions by 7.8% to 236,749 as of August 20th. This marks the highest level since early 2020, according to weekly US government data released on Friday.
Implications for gold prices
The substantial increase in bullish bets on gold suggests that investors are positioning themselves for a potential uptrend in gold prices. Historically, gold has been viewed as a safe-haven asset during times of economic uncertainty and market volatility.
Additionally, the anticipation of further monetary easing by the Federal Reserve could weaken the US dollar, making gold a more attractive investment option for investors seeking to hedge against currency devaluation and inflation risks.
Overall, the heightened bullish sentiment towards gold indicates a growing interest in the precious metal as an investment vehicle amidst ongoing economic challenges and uncertainties in the global financial markets.
