Hedge funds have taken commodities to new highs after one year of doldrums. This was according to data obtained by Reuters, fueled by gold demand as safety measures against the financial issues hounding Cyprus and its bailout measure.
According to calculation made by the Commodity Futures Trading Commission, money managers and hedge funds together with other speculators held a net-long position valued at US$65.2 billion in twenty two different commodities for the week ending March 19. This was a turnaround from net-long managed position fell to a low of US$54.3 billion last December 2011.
The increased activity centered on gold, hitting three week highs after funds sought out the yellow metal as a safety net against the possible financial issues in Cyprus and Euro Zone.
Another hedge fund was in another yellow product, corn which was reported to be in short supply. Another commodity in demand was natural gas, as demand for heat increased driven by cold US weather.
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