Hedge funds resume bullish gold bets on Greek turmoil

Chicago

HEDGE funds are stepping back onto the gold bandwagon as political turmoil in Greece and government actions in Asia helped send prices to their biggest monthly advance since June.

Bullish wagers on the metal increased for the first time in three weeks and have more than doubled since mid-November, US government data show. Short holdings dropped for the sixth week in seven. Bullion rose for a second straight month in December.

While cheap oil has kept inflation in check, gold's appeal as an alternative asset got a boost as Greek opposition to austerity measures may p…