Hedge funds and other money managers have been stepping up wagers on gold as the bullion reached a series of new highs on the back of reaccelerating inflation. Overweighting precious metals has become the consensus among the largest money managers, with 83% of them being long the asset class, a new Citi analysis of top investors overseeing more than $18 trillion showed. The study also found that gold is the only commodity that big allocators added to over the past month. Gold futures settled at a record high above $2,400 an ounce this week. The precious metal is coming off its third straight week of gains. Investors have been bidding up the precious metal as geopolitical risks rose and inflation reaccelerated. Gold is often used as an inflation hedge because of its limited supply. “The rally has been fueled by a powerful cocktail of safe-haven and hedge fund purchases, prompted by record-high equities and sticky inflation,” James Steel, chief precious metals analyst at HSBC Securities, said in a note. “This, in turn, is triggering heavy momentum buying.” @GC.1 YTD mountain Gold Professional speculators’ net-long positions in gold futures and options hovered near the highest level since 2020 as of April 9, according to the Commodity Futures Trading Commission’s latest data. David Neuhauser, founder of Northbrook, Illinois-based hedge fund Livermore Partn …
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[mwai_chat context=”Let’s have a discussion about this article:nnHedge funds and other money managers have been stepping up wagers on gold as the bullion reached a series of new highs on the back of reaccelerating inflation. Overweighting precious metals has become the consensus among the largest money managers, with 83% of them being long the asset class, a new Citi analysis of top investors overseeing more than $18 trillion showed. The study also found that gold is the only commodity that big allocators added to over the past month. Gold futures settled at a record high above $2,400 an ounce this week. The precious metal is coming off its third straight week of gains. Investors have been bidding up the precious metal as geopolitical risks rose and inflation reaccelerated. Gold is often used as an inflation hedge because of its limited supply. “The rally has been fueled by a powerful cocktail of safe-haven and hedge fund purchases, prompted by record-high equities and sticky inflation,” James Steel, chief precious metals analyst at HSBC Securities, said in a note. “This, in turn, is triggering heavy momentum buying.” @GC.1 YTD mountain Gold Professional speculators’ net-long positions in gold futures and options hovered near the highest level since 2020 as of April 9, according to the Commodity Futures Trading Commission’s latest data. David Neuhauser, founder of Northbrook, Illinois-based hedge fund Livermore Partn …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]
