Gold Traders More Bullish as Hedge Funds Increase Bets on Gains

Gold traders are the most bullish in three weeks after hedge funds boosted their wagers on higher prices amid speculation Europe’s debt crisis and slow U.S. growth will spur demand for the metal as a protection of wealth.

Twenty-eight of 32 people surveyed by Bloomberg expect bullion to rise on the Comex in New York next week, the most since Oct. 14 and the second increase in a row. Money managers boosted their combined net-long position in New York gold by 8.7 percent in the week to Oct. 25, U.S. government data show. Traders expect lower copper and raw-sugar prices next week, and gains in corn and soybeans, separate surveys showed.