•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

Komfie Manalo, Opalesque Asia:

Hedge funds are buying the yellow metal ahead of the U.S. presidential election in anticipation that gold will continue its rally for a second straight week, Bloomberg reported citing data from the Commodity Futures Trading Commission (CFTC).

This is the first consecutive gain of the bullion since July this week as fearful investors anticipate the outcome of the race between Democrat Hillary Clinton and Republican Donald Trump, with the latter gaining strength as evidenced by early votes from Iowa and Ohio. Money managers have pushed the price of gold that they deem as less risky as the S&P 500 Index of equities fell to its longest slump since 1980.

Chad Morganlander, a New Jersey-based money manager at Stifel, Nicolaus & Co., told Bloomberg, "Investors are squaring their books going into elections to make sure they’re hedging their risk. When you have more volatility within the financial system, then investors gravitate towards safe haven asset classes." Stifel, Nicolaus & Co., manages about $172bn in assets.

Data from the CFTC showed that gold net-long position increased 14% as of the week ending Nov. 1, to 172,532 futures and options contracts, the biggest jump since Sept. 27. Gold futures also jumped 2.2% at the Comex in New York, to $1,304.50 an ounce last week.

But Sameer Samana, a S......................

To view our full article Click here