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.
After sensing that Europe’s economic tailspin may have been halted, the markets and commodities opened higher.
The S&P/TSX Composite index was up 2%, and the Dow Jones-UBS Commodity Index was up 1.59%.
Spot gold was largely unchanged from yesterday’s price at $1725/oz.
Oil was up sharply. ICE North Sea Brent crude was up three percent to $112.23 a barrel, and the Dow Jones U.S. Oil & Gas Index was up 2.45%
Some major miners reported strong earnings over night. PotashCorp doubled its earnings and Teck reported a record quarter.
European leaders hammered out a deal late Tuesday to help solve the debt crisis, which had been creating uncertainty and weighing on the markets. Due to Greek’s high debt load, bond holders will be taking a hair cut of 50% on Greek debt, and lenders will be recapitalized to the tune of $1.4 trillion.
