Sunday, September 11, 2011

Funds Boost Bullish Commodity Bets on Outlook for Economic-Stimulus Plans

World Economic outlook Funds Boost Bullish Commodity Bets on Outlook for Economic-Stimulus Plans : Funds increased bullish bets on raw materials for a fourth straight week, the longest series of gains this year, on speculation that economic-stimulus programs will lift demand for metals, grains and energy.

In the week ended Sept. 6, speculators raised their net- long positions in 18 commodities by 0.2 percent to 1.28 million futures and options contracts, government data compiled by Bloomberg show. That’s the highest level since June 14. Funds became bullish on copper for the first time in three weeks, and wagers on a gold rally increased for the first time since early August.

Last week, Federal Reserve Chairman Ben S. Bernanke said policy makers this month will discuss tools they may use to help the recovery, and President Barack Obama proposed a $447 billion plan to spur job growth. The Standard & Poor’s GSCI Index of 24 commodities has surged 27 percent in the past year as the Fed kept U.S. borrowing costs near zero percent and bought Treasuries in a bid to stimulate growth.

“The printing presses of various governments running overtime is likely to keep the commodity markets hot and volatile for quite some time,” Philip Gotthelf, the president of Equidex Brokerage Group Inc. in Closter, New Jersey, said in a telephone interview on Sept. 9.

Investors poured $240 million into commodity funds in the week ended Sept. 7, the first inflow in four weeks, according to EPFR Global, a Cambridge, Massachusetts-based research read more..

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