Speculators cut net-long holdings fourth time in five weeks.
by Joe Deaux
Investors are growing more skeptical of gold’s lasting luster.
Hedge funds and other speculators cut their wagers on a bullion rally for the fourth time in five weeks. As traders tire, the metal’s 30-day historical volatility has dropped to the lowest since November. Open interest is also on the decline.
After stunning gains to start the year, bullion has started to lose its momentum. Prices are down about 1% in August as the US economy picks up steam, damping demand for a haven. American payrolls surged in July and wages climbed, pointing to renewed optimism that the jobs market will sustain consumer spending in the second half of 2016.