Bullish bets on gold drops by most since May

Ahead of the Fed interest rates decision this week, speculators cut their bets on a bullion rally by the most in more than three months, latest CFTC data showed on Friday.

While, holdings in global exchange-traded funds backed by the metal are down from a three-year high in August, Bloomberg reports.

Key Details via Bloomberg:

“The net-long position in gold futures and options fell 11 percent to 248,858 contracts for the week ended Sept. 13, the biggest decline since the week ended May 24, according to CFTC data. A week earlier the holdings were 278,994, the highest since July 5.”

“Global holdings of bullion through ETPs have slid to 2,024.36 metric tons from 2,039.93 tons in August, the highest in more than three years, data compiled by Bloomberg show. Assets in SPDR Gold Shares, the biggest fund backed by the metal, are on pace for a second straight monthly decline.”