Hedge Funds Boost Gold Bets

Sep 9 2013 | 9:59am ET

Hedge funds are pouring money into gold futures as a safe haven in advance of possible U.S. airstrikes on Syria.

Net-long positions in the precious metal rose 3.6% as short bets dropped 8.6% in the week ended Sept. 3, the Commodity Futures Trading Commission said. The net-long position is the highest its been since January, prior to a huge drop in gold prices.

"Whenever you have a period of unrest, war or investor fear, people go to gold," Dan Denbow, manager of the USAA Precious Metals & Minerals Fund, told Bloomberg News.

On the whole, investors moved away from commodities, with net-long positions in a basket of 18 U.S.-traded contracts dropping 0.3%. Much of that decline is due to investors fleeing copper; bullish bets on that metal fell 37% on the week. Net-long positions across 11 agricultural contracts dropped 1.3%.


In Depth

Q&A: Sancus Capital And The Disruption Of The CLO Market

Oct 5 2017 | 6:28pm ET

Traditional collateralized loan obligation (CLO) funds in the U.S. market can offer...

Lifestyle

CFA Institute To Add Computer Science To Exam Curriculum

May 24 2017 | 9:25pm ET

Starting in 2019, financial industry executives sitting for the coveted Chartered...

Guest Contributor

Finding Success as Alternatives Converge

Oct 9 2017 | 4:00pm ET

Rising interest among institutional investors over the past several years has led...

 

From the current issue of