According to a Bloomberg report, bets on gold by hedge funds had marked its least bullish approach to the mineral since 2007. The news agency said this was despite the recent economic data that increased the need to decrease the USD85 billion monthly purchases the US Federal Reserve has been doing. The massive asset-buying program was the federal agency's measure to boost the US economy and reduce its unemployment rate.

Data by the US Commodity Futures Trading Commission showed that the the net-long position in gold dropped to 26,774 futures and options in the week ended December 3. On the other hand, short bets increased 6.2% to 79,631, which was within 0.6% of the record that was hit in July this year. The data also indicated an increase in net-bullish wage across 18 US-traded commodities. Standard & Poor's GSCI Spot Index, which tracks 24 raw materials, recorded its biggest gain since August as prospected for energy, metals and grains consumption boosted due to new economic data.

The news agency said gold will be experiencing its record yearly decline in the last 30 years as inflation slows and equities advance. In November, the unemployment rate in the US had reached to its lowest level in five years and that third-quarter economic growth surpassed analysts' estimates, according to the US government reports released last week. The share of economists' who have predicted that the Fed reducing its bond purchases this double multiplied to two after the US government released its jobs report on December 6. Buillion reached a record in September two years ago when the Fed added over USD2 trillion into the US' financial system.

Wells Fargo Advisors LLC St. Louis-based strategist Sameer Samana said, "Gold is experiencing the flip side of some of the euphoria that it had from 2009 to 2011. People are experiencing buyers' remorse as they look for other places to try to store value. Until the market is more concerned about inflation, gold will have a tough time getting traction." His firm manages USD1.3 trillion in assets.