Hedge Funds Take Most Bullish View of Gold in 14 Months

Brian Giesen

Hedge Funds Take Most Bullish View of Gold in 14 Months (Bloomberg)

Hedge funds raised bullish gold bets to the highest level in more than 14 months, amid mounting concern that the U.S. economic recovery is slowing. The net-long position climbed 25 percent to 113,911 futures and options in the week ended Feb. 25, the highest mark since December 2012, based on U.S. Commodity Futures Trading Commission data. Net-bullish holdings across 18 U.S.-traded commodities advanced 16 percent to 1.45 million contracts, the most since April 2011. Coffee wagers reached a 33-month high. Investors’ return to gold after the bear market in 2013 drove prices for the precious metal 6.6 percent higher last month to mark the biggest jump since July. Gold reached a four-month high on Monday.

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Paul Dykewicz

Paul Dykewicz is the editor of StockInvestor.com and the editorial director of Eagle Financial Publications in Washington, D.C. He writes and edits for the website, as well as edits investment newsletters, time-sensitive trading alerts and other reports published by Eagle. He also is an accomplished, award-winning journalist who has written for Dow Jones, USA Today and other publications, as well as served as business editor of a daily newspaper in Baltimore. In addition, Paul is the author of the inspirational book, "Holy Smokes! Golden Guidance from Notre Dame's Championship Chaplain." He received his MBA in finance from Johns Hopkins University, where he was a two-time president of the school's Finance Club. In addition, Paul has a bachelor's degree from the University of Michigan and a master's degree in journalism from Michigan State University. Outside of work, Paul volunteers with a faith-based organization to assist the poor in Southeast Washington, D.C., to learn personal finance skills to lift themselves out of debt.