Thursday, 23 May 2013

Bloomberg: Record Gold Shorts Signal Further Price Swings: Chart of the Day

Hedge funds are making the biggest bet ever against gold prices, signaling continued volatility for the metal after prices entered a bear market last month.

The CHART OF THE DAY shows that gains in so-called short contracts are usually followed by increases in a gauge of price swings for the SPDR Gold Trust, the biggest bullion-backed exchange-traded fund. Yesterday, the value of the SPDR Gold ETF climbed as much as $1.5 billion before ending the day down $418 million.

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