Hedge funds and large speculators have ramped up their bullish positions on gold to the highest level in more than four years, driven by expectations of earlier and more significant monetary easing by the Federal Reserve, according to report by Bloomberg.
The report cites new data published by the US government as showing that net-long positions in gold increased by 7.8% to 236,749 contracts as of 20 August, marking the highest level since early 2020.
The surge in gold positions comes as the precious metal hit a record high of $2,531.75 per ounce on Tuesday, after crossing the $2,500 mark earlier this month. The rally comes amid growing anticipation that the Fed is moving closer to cutting interest rates, which would typically benefit gold.
