Hedgies Betting on Lower Gold Prices as Slump Continues (GLD) (IAU)
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Maybe hedge fund giant John Paulson should start rethinking his strategy a little?
Bloomberg noted Monday that hedge funds are still largely bearish on gold following recent comments from BlackRock (NYSE: BLK) that the firm is still positive the metal. Gold is off to its worst start since 1982, with prices sliding 15 percent on the year.
The latest numbers from the CTFC show net-long positions in gold dropping 10 percent to 49,260 futures and options, while short contracts on gold rose 6.4 percent to 67,374 positions.
Given the recent pressure on gold, Paulson's Gold Fund has see na 27 percent drop in just April alone and 47 percent for the year. Despite the dip, Paulson is comfortable with his position in the metal.
BlackRosk's President Robert Kapito commented on May 9th in a Bloomberg interview that he would still buy the metal. The firm is the top investor in the iShares Gold Trust (NYSE: IAU).
China and India are seeing strong demand for the metal as well. Refiner MMTC-PAMP India Pvt. said recently that Indian imports high 100 tons last month, which is now valued at $4.7 billion. In China, data from the China Gold Association on May 7th had consumption rising 26 percent in the first quarter of 2013.
Along with the iShares Gold Trust, traders will be keeping an eye on the SPDR Gold Shares (NYSE: GLD) ETF, as well as Market Vectors Gold Miners ETF (NYSE: GDX).
Bloomberg noted Monday that hedge funds are still largely bearish on gold following recent comments from BlackRock (NYSE: BLK) that the firm is still positive the metal. Gold is off to its worst start since 1982, with prices sliding 15 percent on the year.
The latest numbers from the CTFC show net-long positions in gold dropping 10 percent to 49,260 futures and options, while short contracts on gold rose 6.4 percent to 67,374 positions.
Given the recent pressure on gold, Paulson's Gold Fund has see na 27 percent drop in just April alone and 47 percent for the year. Despite the dip, Paulson is comfortable with his position in the metal.
BlackRosk's President Robert Kapito commented on May 9th in a Bloomberg interview that he would still buy the metal. The firm is the top investor in the iShares Gold Trust (NYSE: IAU).
China and India are seeing strong demand for the metal as well. Refiner MMTC-PAMP India Pvt. said recently that Indian imports high 100 tons last month, which is now valued at $4.7 billion. In China, data from the China Gold Association on May 7th had consumption rising 26 percent in the first quarter of 2013.
Along with the iShares Gold Trust, traders will be keeping an eye on the SPDR Gold Shares (NYSE: GLD) ETF, as well as Market Vectors Gold Miners ETF (NYSE: GDX).
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