Hedge funds and money managers boosted their bullish bets on gold futures and options for the first time in three weeks, as the metal's prices climbed on rising geopolitical tensions, the Commodity Futures Trading Commission said on Friday.
The group, also known as Managed Money, slashed net-long positions in silver and copper markets in CFTC's latest Commitments of Traders report.
Iraq's worsening security conditions due to an Islamist insurgency and increasing violence in Gaza triggered safe-haven demand, sending bullion prices nearly 2 percent higher in the week to Aug. 12, the period covered by the CFTC data.
Speculators increased their net long position in gold by 29,598 contracts to 133,708 lots, the CFTC data showed.
The group lowered net long positions in silver by 5,560 lots to 23,506 contracts.
Speculators also cut 15,233 bullish bets in copper to lower the market's net longs to 19,096 lots, their fourth consecutive decrease.
In addition, the group increased bets on platinum by 1,243 contracts to a net long of 39,080, and added palladium longs by 1,351 to 18,158.
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