In recent years, according to analysts TeleTrade, hedge funds at a record pace close long positions in gold on a background of how metal prices showed the strongest monthly decline since the beginning of the year.
Thus, the net long position fell by 24% and amounted to 68,393 contracts. Attractiveness of alternative investments, which include gold, strongly prevented the rally in stocks. The number of short positions in gold reached a record for the last 15 weeks. Also contributes to the weakening of the gold and the situation in Ukraine.
Recently, a little hushed Russian aggression . Gold goes down along with the rest of commodity assets . GSCI Spot Index, which is calculated on 24 types of exchange-traded commodities, fell in May by 0.4%. At the same time , within the index itself , the sharpest drop showed coffee and wheat, sagging by about 13 % , analysts TeleTrade.
But we can hardly expect a further fall in the price of gold. Bad data on Macroeconomics U.S. for the first quarter show unfounded euphoria on the stock markets . Gold returns from politics in the usual discharge interesting assets when investors want to protect their wealth from the economic slowdown .