Hedge funds and other money managers have been increasing their bets on gold as inflation accelerates again and gold prices hit a series of new highs. Citi’s latest analysis of top investors overseeing more than $18 trillion shows that overweight precious metals has become the consensus among the largest fund managers, with 83% of them going long on the asset class. The research also found that gold was the only commodity added to by large allocators over the past month. Gold futures ended the week at a record high above $2,400 an ounce. The precious metal has gained for a third straight week. Investors have been raising prices for precious metals as geopolitical risks rise and inflation accelerates again. Gold is often used as an inflation hedge due to its limited supply. “Record stock market highs and sticky inflation have fueled a strong mix of safe-haven and hedge fund buying,” James Steel, chief precious metals analyst at HSBC Securities, said in a note. This rally. “That, in turn, triggered strong buying momentum. ” @GC.1 YTD mountain Gold Professional speculators’ net long positions in gold futures and options hovered near their highest levels since 2020 as of April 9, according to the latest data from the Commodity Futures Trading Commission. Headquartered in North, Ill. David Neuhauser, founder of Bruker’s hedge fund Livermore Partners, told CNBC that he recently increased his weighting in gold to more than 20%, including gold mining stocks and gold itself. “Because of the inflation rate,” Neuhauser said in a phone interview. Well above trend levels and extremely sticky, it doesn’t take a rocket scientist to figure out that gold can play a huge role. “We are facing structural changes in terms of inflation, and gold will be the metal where investors continue to worry about currency chaos and currency devaluation. ” Neuhauser said he expects gold bars to hit $3,000 in the next few years. Notably, Greenlight Capital’s David Einhorn puts gold in a “very large position” as a defense against potential market downturns. “The country as a whole There’s a problem with monetary and fiscal policy, and if both policies are systematically too loose, I think deficits are ultimately a real problem and I think that’s a way of hedging against non-risk risks – there’s such a good thing going on. ” Einhorn said in early April. The hedge fund star revealed that not only does he own the popular SPDR Gold Trust (GLD), but he also buys physical gold bars. Deutsche Bank on Tuesday raised its gold price forecast to $2,400 an ounce by the end of the year and to $2,600 an ounce by the end of 2025.
