UPDATE 1-Specs slash gold, silver longs, increase copper shorts
June 29 (Reuters) - Money managers cut their net long position in gold futures and options by 20 percent, the first decline in five weeks, as a lack of fresh monetary stimulus by the U.S. Federal Reserve prompted some bullion investors to lessen their bullish bets.
The group slashed its net longs in gold by 20,485 to 84,161 lots in the week ended June 26, when bullion prices fell sharply, data from the Commodity Futures Trading Commission (CFTC) showed.
The group also cut their net longs in silver by 4,603 to just 2,888 contracts, while it boosted its net short position in copper by 1,873 to 13,770 contracts
Despite the drop in net longs in the precious metals, traders said that the closely watched figures are likely to rebound next week.
"I would expect a jump in net spec longs in both gold in silver after gold broke above $1,600 an ounce," said Sean McGillivray, head of asset allocation in Great Pacific Wealth Management.
"That was the first sign of risk-taking coming back to the market with the EU announcement," he said.
Gold prices surged 3 percent to above $1,600 an ounce on Friday as a European deal to shore up banks and cut borrowing costs lifted bullion's investment appeal.