Several hedge fund giants have raised their bullish bets on gold, according to Wall Street source.To get more news about WikiFX, you can visit WikiFX news official website.
These include Elliott Management led by Paul Singer, Caxton Associates managed by Andrew Law and Dymon Asia Capital founded by Danny Yong.
According to latest Commitment of Traders report released by the US Commodities and Futures Trading Commission(CFTC) on May 1st, as of the week ending on April 28th, speculative net longs increased by 13,158 to 262,729 contracts, signaling a growing bullish bet on gold. Speculators are betting that a new round of monetary easing and fiscal stimulus to tackle coronavirus epidemic around the globe will lead to currency depreciation and benefit gold.
US Treasury estimates that net volume of US T-Bond in circulation in Q2, 2020 will increase by US$3 trillion, which creates a new quarterly record. Analysts observed that measures taken by major global economies in the name of fighting the pandemic are essentially printing money without limit, and in such case gold makes an ideal save-haven asset against depreciating currencies.
Alex Mashinsky, chief executive of Celsius Network, said the massive monetary easing policies by central banks would boost the performance of safe-haven gold, while the rest of the gains could be driven by low interest rates and disruptions to gold mining. Wales has announced plans to modify the coronavirus lockdown so that from Monday people can exercise more than once a day, garden centres can reopen, and the government will look at reopening libraries and recycling centres.
Prime Minister Boris Johnson is due to announce the next steps in Britain's battle to tackle the coronavirus on Sunday following a review by ministers of the current measures that have kept millions at home for over six weeks. “We believe there are some small and modest adjustments, which we could make to the regulations,” said Mark Drakeford, who heads the country's devolved government. “These very small and modest adjustments are things we know that we can do safely without having an impact” on the reinfection rate.