Hedge funds continued to pull back from gold last week as investors awaited word from the Federal Reserve about its bond-buying program.
Net-long positions fell by 29% in the week ended June 18, according to the Commodity Futures Trading Commission, while short holdings rose 14%, the most in eight weeks.
Fed Chairman Ben Bernanke said last week that the central bank may slow its quantitative easing program if the U.S. economy continues to improve. The Fed made no immediate change to its program.
Hedge funds and other speculators are also becoming less bullish on other commodities, with net-long positions across 18 commodities falling 2.2% on the week. Long bets across 11 agricultural products dropped 7.9%, with short positions against wheat rising and long positions on corn falling.