Gold traders more bullish on prices in short term

Gold traders are the most bullish in three weeks after hedge funds boosted their wagers on higher prices on speculation Europe's debt crisis and slow US growth will spur demand for the metal as a protection of wealth. Twenty-eight of 32 people surveyed by Bloomberg expect bullion to rise on the Comex in New York this week, the most since October 14 and the second increase in a row. Money managers boosted their combined net-long position in New York gold by 8.7 per cent in the week to October 25, US government data show. Traders expect lower copper and raw-sugar prices this week, and gains in corn and soybeans, surveys showed. Gold climbed above $1,760 (Dh6,464.57) an ounce last week for the first time in six weeks and investors increased their holdings in gold-backed exchange-traded products to a two-month high. Federal Reserve chairman Ben Bernanke signalled more monetary stimulus may be needed to cut unemployment, while the European Central Bank unexpectedly lowered interest rates on Thursday.