Hedge funds cut their net-long position to the lowest since December 2013 and are holding the most short wagers since records begin in 2006, U.S. government data show. Global assets in exchange-traded products backed by gold dropped 56.6 metric tons in March, the most in 15 months. Prices rallied in the previous two weeks on speculation that U.S. interest rates would rise at a slower pace than expected.
Even after Federal Reserve policy makers cut their outlook for where borrowing costs will be by year-end, investors are betting that officials will still lift benchmark rates from near zero fast enough to prevent inflation from surging as the economy rebounds. Gold has historically been used as a hedge against higher consumer prices.
Gold futures for June delivery dropped 1.3 percent to settle at $1,185.30 an ounce at 1:40 p.m. on the Comex in New York, the biggest drop since March 6.
A core measure of consumer prices, which excludes food and fuel, rose 1.4 percent in February from a year earlier, Commerce Department figures showed Monday.
Sumber : ewfpro.com
