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

Electronifie: Better Bond Trading

May 11 2016 | 3:03pm ET

Technology has revolutionized countless aspects of investing and trading, but the...

Lifestyle

From Modern Trader: Stephen Curry is a Black Swan

May 18 2016 | 7:43pm ET

What do the rise of the Internet, the sinking of the Titanic, 9/11, and Stephen...

Guest Contributor

LendingClub and the Question of Internal Hedge Funds

May 19 2016 | 8:42pm ET

Peer-to-peer lending platform LendingClub Corp. has been in the news since the firm...