Salient to Investors:
Hedge funds cut net-long gold positions by the most since June. while holdings of short contracts rose 26 percent. Net-bullish bets across 18 US-traded raw materials dropped to the lowest since March and a measure of bets on agricultural commodities turned negative for the first time. Holdings in global ETPs backed by gold is the lowest since May 2010.
Jim Russell at US Bank said global inflation has not played out as anticipated, and won’t so is not buying gold.
Daniel Briesemann at Commerzbank said gold won’t see lasting gains until investors stop selling ETP holdings.
Bernie Williams at USAA Investments said gold, while volatile, tends to hold up over time, and has a place in a portfolio for preservation of capital and to offset currency debasement.
Barclays said the rise in copper last week was an opportunity to short sell.
Jeff Sica at Sica Wealth Mgmt said there’s been a drastic increase in supply of food commodities, especially corn, and the only way we are going to see an increase in commodities is if we see an increase in QE.
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