Hedge Funds Vulnerable After Raising Gold Bets: Chart of the Day
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After boosting bets on higher gold prices, hedge funds may hesitate from buying more of the metal on expectations for higher U.S. interest rates and unless the standoff between Russia and the West intensifies, UBS AG said.
The CHART OF THE DAY shows that speculators and other money managers increased their net-long positions, or wagers on a rally, to the highest level since November 2012 in the week ended March 18. The buying of gold futures and options helped prices reach a six-month high on March 17. It fell as much as 6.3 percent since then.