Hedge Funds Cut Gold Bets in Longest Slide of 2014: Commodities
By Debarati Roy Apr 21, 2014 6:14 AM ET
Gold May Drop, Nickel, Copper Favored: UBS's Price
Hedge funds lowered bullish bets on gold for a fourth week, the longest streak this year.
The net-long position contracted to the lowest since mid-February as speculators sold bullion on signs of accelerating U.S. economic growth. The investors more than doubled bets on lower prices in the past month while reducing wagers on a rally in six of the past seven weeks.
Prices fell 7.6 percent since reaching a six-month high in March after tension in Ukraine eased and U.S. equities rallied to a record. The number of Americans filing for unemployment insurance payments held last week near the lowest level in almost seven years and retail sales in March increased more than economists forecast. Bullion plunged 28 percent in 2013 as some investors lost their faith in the metal as a store of value.
“It is very difficult for gold to sustain the panic that makes it a good safe-haven trade,” said Frances Hudson, a strategist at Standard Life in Edinburgh, which oversees $294 billion of assets. “I see demand for gold remaining non-enthusiastic. Things are looking better in the U.S. and Europe. It’s not that both these economies are racing ahead, but they are gradually improving.”
more:
http://www.bloomberg.com/news/2014-04-20/hedge-funds-cut-gold-bets-in-longest-slide-of-2014-commodities.html
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