Hedge Funds Turn From Gold, Other Commodities

Aug 13 2013 | 9:49am ET

Hedge funds cut their commodity investments, turning particularly bearish on gold, according to a report from the Commodity Futures Trading Commission.

Hedge funds and other money managers slashed their net-long positions in gold by 27% in the week ended Aug. 6, the largest drop since June. Simultaneously, they boosted short bets against the precious metal by 26%.

But it wasn't only gold: A basket of 18 raw materials saw net-bullish bets drop 19% to their lowest level since March. Long bets on crude oil fell 2.5%, and holdings on 11 agricultural contracts swung from 57,552 net long to 9,713 net short on the week, with bullish soybean bets at their lowest level in more than a year, and hedge funds betting against coffee, soybean oil, sugar and wheat.

Investors gave a vote of confidence of a sort to copper, however, cutting their short bets by more than half.

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