How Bullish Was Last Time’s Hedge Funds?
As of Monday, the yellow metal was on the highs after an unsatisfactory week when the gold was being hammered by a stronger dollar and relighted the expectations of a rate hike in the U.S.
From the most active contract, heavy trading gold futures in New York for June’s delivery made it to advance to a high of $1,243.30 an ounce in morning dealings before paring some of those gains.
Gold still hit a 13-month high as of $1,274 an ounce in March despite the recent weakness. The yellow metal remains up 17% in 2016.
Many large futures speculaters or the “managed money” type of investors will continue to rally in 2016 as they have remained the courage of their convictions that gold will really pursue its standing for this year.
Hedge funds intensely raised bearish bets on gold during the final months of 2015 pushing the overall market into a net short position – bets that gold could be bought back at a lower price in the future – for the first time since at least 2006, when government first started to collect the data.