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.
Teck Resources, First Quantum, Lundin Mining, Cameco and Labrador Iron Ore have been named as top mining picks in an investors note by RBC Capital Markets analyst H. Fraser Phillips.
These five were selected for their strong balance sheets and free cash flow, though it may take a while for global economic recovery to eat up excess inventories.
“Global economic prospects appear to be improving but slow growth remains a challenge,” said Phillips.
“Significant excess inventories have accumulated and capacity utilization rates are well below full effective levels, pointing to a weak commodity pricing environment.”
Cameco — $24.00
Labrador Iron Ore — $34.00
First Quantum — $22.00
Lundin Mining — $5.75
Teck Resources — $35.00
Cameco’s Cigar Lake Operations (Credit: Cameco)
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