Hedge Funds’ Gold Positioning Near All-Time Highs
This election was sure to offer uncertainty, even had it been Bush V Clinton. Trump has amplified the uncertainty with his unwise rhetoric and completely unanticipated success in the primary.
This is not an endorsement of the idea to buy gold. Just an observation of real world effects of this bull in a China shop campaign.
Hedge Funds’ Gold Positioning Near All-Time Highs Monday May 09, 2016 10:19
(Kitco News) - Hedge funds were significant gold buyers last week as prices pushed above $1,300 an ounce, hitting the highest level in 15 months, according to the latest data from the Commodity Futures Trading Commission.
The disaggregated Commitments of Trader report, for the week ending May 3, showed money managers increased their speculative gross long positions in Comex gold futures by 42,366 contracts to 248,842. At the same time, short bets fell by 4,479 contracts to 29,947. The latest data shows the gold market is net long by 218,895 contracts.
Ole Hansen, head of commodity strategy at Saxo Bank, noted that gold’s net length jumped 27% from the previous week and is within reaching distance of its all-time record high seen more than five years ago.