Gold Silver Reports — Gold Losing Its Shine Among Investors – Hedge funds and other speculators cut their wagers on a bullion rally for the fourth time in five weeks. As traders tire, the metal’s 30day historical volatility has dropped to the lowest since November.Open interest is also on the decline .
Gold Losing Its Shine Among Investors
After stunning gains to start the year, bullion has started to lose its momentum. Prices are down about 1% in August as the US economy picks up steam, damping demand for a haven. American payrolls surged in July and wages climbed, po inting to renewed optimism that the jobs market will sustain consumer spending in the second half of 2016. “People don’t believe in the gold rally,“ said Frank Holmes, who oversees about $700 million as CEO of US Global Investors in San Antonio, Texas. “You can see this last dip in gold, the employment numbers are so good. When there is good economic data out, rates rise and the price of gold goes down . “
The net-long position in gold futures and options fell 4.3% to 255,773 contracts in the week ended August 9, according to Commodity Futures Trading Commission data.The holdings have dropped 11% since July 5, when they reached an alltime high of 286,921 . — Neal Bhai Reports