Oct
25
Hedge Funds Are Getting Their Gold Bets Wrong
By-
Net-long wagers reach 8-month high before prices slump
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Money managers increased bullish holdings for five weeks
Gold prices are befuddling hedge funds, which are posting a track record no better than a coin flip when it comes to betting on the metal.
The funds and other money managers have placed wrong-way wagers on gold in five of the past nine weeks, U.S. government data show. Last week, speculators increased their net-bullish position to the highest since February just before the biggest price drop since August. The precious metal has fluctuated between year-to-date gains and losses more than a dozen times in 2015 as traders weigh a dimming global economic outlook against the prospect for higher U.S. borrowing costs…
Hedge Funds Are Getting Their Gold Bets Wrong
