19 September 2016 at 5:53 GMT
Gold investors seem to agree: Don’t fight the Federal Reserve. With the Fed’s next policy meeting looming this week, hedge funds are exiting from gold. Joe Deaux writes that speculators cut their bets on a bullion rally by the most in more than three months. Holdings in global exchange-traded funds backed by the metal are down from a three-year high in August. Aggregate open interest in New York futures is mired in the longest slump since May. Speculation is mounting that Fed officials will signal that higher US interest rates are on the way. That’s bad news for gold, which thrives as an alternative asset. Through Friday, the metal had surged 24% for the year as the policymakers declined to raise borrowing costs.
Read full article at Bloomberg