Hedge funds raised their bullish gold bets to a six-week high, splitting with analysts at Technical Research Advisors LLC and Goldman Sachs Group Inc. who are predicting more declines after last year’s rout.
The Standard & Poor’s 500 Index retreated from a record, set after the Federal Reserve’s decision to cut stimulus yesterday, as investors weighed economic data that included jobless claims and home sales.
Yields on 10-year Treasury notes climbed to a three-month high, gold sank and the Standard & Poor’s 500 Index fell from a record following the Federal Reserve’s decision to reduce bond purchases. European stocks rose, catching up with yesterday’s U.S. rally.
Ben S. Bernanke, the world’s most- powerful central banker, says he doesn’t understand gold prices. If his peers had paid attention, they might have stopped expanding reserves that lost $545 billion in value since bullion peaked in 2011.
Most U.S. stocks fell, after the Standard & Poor’s 500 Index rose to its highest level since April, as investor concern about Europe’s debt crisis overshadowed a rally in technology and financial companies.
Stocks rose, with the Standard & Poor’s 500 Index rebounding from a two-month low, while European equities erased early losses and the euro snapped the longest slide since 2008 as Greece attempted to form a new government.
U.S. stocks climbed, giving the Standard & Poor’s 500 Index its biggest gain of the month, as better-than-estimated housing starts added to expectations the world’s largest economy will weather Europe’s debt crisis.