Hedge Funds Exit Gold Before Fed Sparks Worst Rout in Month
- Prices fall as Fed raises rates, signals more to come
- Investors exit SPDR Gold ETF at fastest pace this year
Gold bars weighing one kilogram each sit on a table in the vault of gold vendor in Munich, Germany.
Photographer: Guenter Schiffmann/BloombergThis article is for subscribers only.
Hedge funds were smart enough to get ahead of Janet Yellen’s bad news for the gold market.
Money managers pared their net-bullish wagers in the metal for the first time in four weeks. The next day, the move was vindicated when Federal Reserve Chair Yellen raised U.S. interest rates and sparked the biggest weekly loss for gold prices in more than a month.