Hedge funds raised bullish gold wagers by the most since July and sold copper holdings as emerging-market turmoil boosted concern the global economy will slow and increased demand for precious metals as a haven.
Hedge funds raised bullish gold wagers to the highest in eight weeks as signs of stronger Chinese demand drove prices to the longest rally since August. Goldman Sachs Group Inc. says the gains will be short-lived.
There are two main indexes tracked by commodity tracker funds: The S&P-Goldman Sachs Commodities Index and the Dow Jones UBS Commodities Index. Assessing the likely impact of these passive longs on Comex throws a new light on the record level of Managed Money short positions.
After more than a decade of perpetual strength, gold suffered its worst losses since the early 1980s. Many investors have eschewed the metal in favor of stronger markets; however, this has helped to return this long-term bull market to health.