Hedge Funds Cut Gold Bull Wagers by Most in Eight Weeks Hedge funds reduced bets that gold would rally from the longest retreat in a year as U.S. economic growth exceeded analysts’ estimates. Money managers cut their net-long position by 10 percent in the week through July 29, the most since June, U.S. government data show. Prices dropped for a third week, the longest slide since July 2013. The decline helped to erase almost $610 million from the value of exchange-traded products backed by the metal. Gold fell 3 percent in July, snapping a 10 percent rally in the first half of the year that outpaced gains for commodities, equities and Treasuries. Even as violence escalated in the Middle East and Eastern Europe, investors sold bullion as signs of quickening American expansion reignited concern that the Federal Reserve will raise borrowing costs. The U.S. grew 4 percent in the second quarter. “The economic climate has become more moderate in the U.S., and there’s no sign of inflation picking up, so the fear factor that typically drives gold has subsided,” Bill Schultz, who oversees $1.2 billion as chief investment officer at McQueen, Ball & Associates in Bethlehem, Pennsylvania, said Aug. 1. “If we continue to see this reasonable growth rate, I think [...] newsintx/hedge-funds-cut-gold-bull-wagers-by-most-in-eight-weeks/
Posted on: Sun, 03 Aug 2014 22:40:22 +0000
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