Hedge funds have pushed the net-long positions of gold to levels which have not been realized for nearly two years. There are also conflicting opinions on what will happen to this valuable metal for 2015.
Speculators purchased gold for the fourth straight week aggressively while silver was bought for nearly 12 weeks although the position has not been extended, based on data provided by Bank of America (Merrill Lynch).
The bank announced indicators imply investors are upbeat for precious metals. This point of view is propped up by investment banks and economists. Yet, targets where gold will end up by the end of the year are contradictory.
Gold prices went up more than one percent last week and topped $1,300 for every troy ounce for the very first time going back to the third quarter of 2014.
Commodity analysts are convinced high gold trading is related to the raised projections for 2015 gold bullion prices to the middle $1,200s level from the $1,220 estimate at the end of last year.
Gold recovered after losses following the weakness of the US dollar and equities. Gold futures for settlement in February climbed nearly $15 to sell at $1,295 per troy ounce.
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