Gold traders are more bullish after investors accumulated the biggest-ever hoard of the precious metal, as a hedge to Europe’s deepening debt crisis.
The turmoil in Europe drove investors to protect their wealth with this year’s second-best performing commodity, which is up 19 percent, right behind the 24 percent gain in oil.
Hedge funds increased their long positions in gold, on bets that prices in the short term will go higher, Commodity Futures Trading Commission data shows.
Almost $12 trillion in market capital was wiped off the value of global equities since May on mounting concern about slower global growth, driving investors to what are perceived as the safest assets.
Gold is heading for an 11th consecutive annual gain.