NEW YORK: Hedge funds are betting on a big commodity price rebound after a dismal second quarter, with trade data showing bets for higher prices at a near six-month peak after the US Federal Reserve softened its stance on tapering its monetary stimulus.
Wagers on US crude oil are already at record highs, the weekly data from the US Commodity Futures Trading Commission(CFTC) showed. Bets are also growing for a rebound in gold after its price tumbled 23% in the second quarter. Fed Chairman Ben Bernanke, addressing Congress over two days this week, said the central bank’s stimulus-tapering plans were not set in stone and depended on the strength of the economy. He had previously signalled that the Fed’s $85 billion in monthly bond purchases would be scaled back later this year and ended altogether in 2014.