Gold Traders Are More Bullish

Commodity Futures Trading Commission data show that hedge funds’ bets on a rally are the biggest in seven months. The ECB has held interest rate at a record low. The Bank of Japan has said it will add to a fund that buys assets.

Since QE1 & QE2, Fed bought $2.3 trillion of debt making Gold rose 70 percent. This year Gold climbed 14 percent. Betting on QE3, many analyst are anticipating inflation to rise in future.

Many investors see Gold as a hedge against inflation and weaker dollar. And low interest rate are for sure increase interest in metal and commodities.