Hedge funds slash bullish wagers on gold over Trump election win
Hedge funds and other large speculators boosted net-long positions by 11% to 197,362 as of Nov. 12, the lowest in 14 weeks.
Liberty Trading Group president James Cordier sees gold prices rising on increasing inflation and currency wars.
“We’re basically looking at reallocation,” he told Fox Business.
“Many investors over the least several months got scared into precious metals hearing about the European banking crisis and trillion-dollar deficits. And what we have found in the past is that the public is notoriously having a bad time — difficult time — holding onto assets when the stock market is rallying,” the commodity trading advisor said.
Cordier added the market is seeing a lot of smaller investors selling their gold and silver and getting into stocks.
He said the trend is about to run its course and gold will become a currency later this year.
“Of course the stock market eventually is going to run out of some steam, and I think some of the money will come out of that and go into precious metals, platinum and gold especially.”
Watch the full interview here:
