Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Hedge funds aren't buying into gold price rally

Hedge funds aren't buying into gold price rally

Gold jumped to a five-week high on Monday as bullion bulls made the most of sputtering stock markets and a weaker US dollar.

Gold for delivery in February, the most active contract on the Comex market in New York, hit a high of $1,186.40 an ounce in early afternoon trade, up over 1% from Friday's close and the highest on an intra-day level since December 5.

Gold is up $60 an ounce since hitting post-US election lows of $1,124 mid-December, but remains down just over $150 from an initial but brief surge on election night as results showed a likely victory for Trump in the presidential race.

According to a survey by Bloomberg released on Friday, gold traders are the most bullish in over a year predicting strong gains in 2017 following a 8.7% rise of the course of 2016:

Despite gold's brightening prospects,  hedge funds or so-called managed money investors in gold futures and options continue to add to bearish bets on the metal.

To continue reading please click link http://www.mining.com/hedge-funds-arent-buying-gold-price-rally/