Bloomberg: Gold rose on speculation hedge funds may increase their holdings of the precious metal after prices fell 3 percent from a 17-year high.
Gold for immediate delivery traded at $466.40 an ounce at 11:48 a.m. Sydney time, down from the intraday high of $480.49 on Oct. 12. Hedge fund managers and other large speculators reduced their net-long position in New York gold futures by 4 percent, in the week ended Oct. 18, the U.S. Commodity Futures Trading Commission said Oct. 21.
“We see some buying as the price has fallen $15 from the high,” Fred Okuda, chief gold trader at Sumitomo Corp., said by phone from Tokyo today. “The focus is shifting to whether the funds will start to buy aggressively or not. Yesterday, we saw these bids in New York that signaled some funds were buying.”
