Gold's appeal to speculators dims

[NEW YORK] Speculators are the least bullish on gold in 2 1/2 months on mounting confidence that US economic growth is accelerating out of its winter retreat.

Money managers cut their net-long position in bullion to the smallest since mid-February during the week ended April 29. Wagers tumbled 25 per cent last month, the most since November, and investors cut their holdings in exchange-traded products backed by the metal to the lowest since 2009.

Futures fell 5.7 per cent from a six-month high in March as the American economy bounces back from the harshest winter in three decades.