There are a growing number of articles that quote Hedge funds managers who claim
to increase their exposure on gold. On Monday, November 21st when gold price
sharply declined Bloomberg reported that Hedge Funds cut their bullish bets on
many commodities due to the debt concerns in Europe, but the article also showed
that Hedge funds also increased their net long position in gold. This trend in
gold hoarding was confirmed again today with Bloombergs report that gold traders
continue to be bullish on the precious metal. The only problem is that this gold
hoarding isnt represented in the current gold price. During the past couple of
weeks from November 11th until November 25th – gold price declined by 5%;
silver price also sharply declined by 7.8%. The chart above shows the recent
downward fall of both precious metals prices. This could mean that despite the
growing bullish bets of Hedge Funds in gold, their purchase power doesnt keep up
with the many traders who trade down gold. On the other hand, if this gold
hoarding will continue, its likely to eventually change the recent downward
direction of gold and silver prices and help them rally. Forex Trading / Gold
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