Gold seen hitting bottom after long slump

New York

WITH gold showing signs of recovery after its longest slump in 17 years, investors are staking a claim that the precious metal is reaching a bottom.

Short interest in the SPDR Gold Shares exchange-traded fund is near the lowest level since April, according to data compiled by Bloomberg and Markit Ltd. Investors own about 680,000 options betting on a decline in the ETF, compared to about 1.4 million contracts wagering on a rise. That's around the lowest ratio of puts to calls since September, Bloomberg data show.

Gold surged 1.6 per cent on Wednesday, the most since January, as the Federal Reserve indicated interest rates will rise at a slower pace that previously forecast. That trimmed gold's 10 per cent retreat from its 2015 peak spurre…