{"id":940160,"date":"2018-08-19T15:33:19","date_gmt":"2018-08-19T15:33:19","guid":{"rendered":"https:\/\/juniorminingnews.com\/?p=940160"},"modified":"2018-08-19T15:33:19","modified_gmt":"2018-08-19T15:33:19","slug":"hedge-funds-turned-record-short-on-metals-just-before-the-rout-2","status":"publish","type":"post","link":"https:\/\/juniorminingnews.com\/?p=940160","title":{"rendered":"Hedge funds turned record short on metals just before the rout"},"content":{"rendered":"

By Bloomberg News<\/a><\/span> <\/p>\n

Commodity markets have gone haywire \u2014 and hedge funds with picture-perfect timing are set to rake in stellar profits.<\/p>\n

As U.S.-China trade tensions escalated mid-June, fast-money traders flipped to a short position in metals overall, subsequently extending bearish wagers to a record coming into the maelstrom of the past few days.<\/p>\n

Hedge funds’ net position stood at a negative 51 percent in precious metals and negative 37 percent in base metals as of Tuesday, according to Credit Suisse Group AG prime services.<\/p>\n

Never before have the metals in aggregate been shorted to this degree show the data, which captures client exposures to commodity futures and exchange-traded funds since 2010.<\/p>\n

The bet has proved prescient. Gold fell to its lowest price since January 2017 this week amid dollar strength, while industrial metals posted their biggest one-day tumble in nearly seven years as negative sentiment in China and Turkey fueled a global risk-off.<\/p>\n

\u201cIt was very unique to have both shorts at these levels, and obviously profitable,\u201d said Mark Connors, head of risk advisory at the Swiss bank.<\/p>\n

Hedge funds and other large speculators held a record 63,282 net contracts shorting gold futures and options, according to Commodity Futures Trading Commission data.<\/p>\n

Base metals pared some losses at the end of the week, a bounce attributed to signs of thawing trade tensions. Copper futures gained 2.2 percent on Thursday after their worst one-day sell-off in over three years.<\/p>\n

Yet the recovery could prove a head-fake, if it’s been exacerbated by smart-money traders taking profit from shorts that would have paid off handsomely amid the carnage.<\/p>\n

\u201cThis certainly can be a short-lived tactical move by funds in base metals,” said Connors.<\/p>\n

(By Dani Burger).<\/em><\/p>\n

The post Hedge funds turned record short on metals just before the rout<\/a> appeared first on MINING.com<\/a>.<\/p>\n

…read more<\/a> <\/p>\n

From:: Mining.com<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By Bloomberg News Commodity markets have gone haywire \u2014 and hedge funds with picture-perfect timing are set to rake in stellar profits. As U.S.-China trade tensions escalated mid-June, fast-money traders flipped to a short position in metals overall, subsequently extending bearish wagers to a record coming into the maelstrom of the past few days. Hedge […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"categories":[369],"tags":[],"class_list":["post-940160","post","type-post","status-publish","format-standard","hentry","category-miningcom"],"_links":{"self":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/940160","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=940160"}],"version-history":[{"count":0,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=\/wp\/v2\/posts\/940160\/revisions"}],"wp:attachment":[{"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=940160"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=940160"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/juniorminingnews.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=940160"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}