23 April 2009

Gold very bullish, imo

Hedge-fund managers and other large speculators increased their net-long position in New York gold futures by 2 percent in the week ended April 14, according to US Commodity Futures Trading Commission data. Speculative long positions, or bets prices will rise, outnumbered short positions by 129,895 contracts on the Comex division of the New York Mercantile Exchange.....

Gold imports by India may more than double this month from a year ago as the recent price decline revives demand ahead of the nation’s Akshaya Tritiya festival next week.

Purchases may reach 50 metric tons from about 25 tons last year, said Harmesh Arora, vice president of the Bombay Bullion Association. About 10 tons has been imported since April 1, he said in Mumbai.

India’s central bank reduced interest rates for the sixth consecutive month to 3.25pc, a record low. Sweden’s central bank, the world’s oldest, cut its main rate to 0.5pc. Investments in the SPDR Gold Trust, the biggest exchange-traded fund in gold, have more than tripled in the past year as governments worldwide lowered rates to revive economies, making gold more competitive because it doesn’t pay interest.


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