Despite record losses for gold and other precious metals, many hedge funds and speculators continued to pour money into these investments. This was confirmed through trading data obtained that indicated the inflows for gold and other commodities.
The net long position held by fund managers across twenty two identified US traded commodities increased by almost US$950 million or by a total of 6%. This makes the week's total ending April 16 fund at US$56.5 billion according to Reuters calculations from data released by the Commodity Futures Trading Commission.
The released data was the direct opposite of what many traders and analysts were expecting as large outflows of funds from gold and other commodities after prices declined significantly across many of these markets back in April 15. The main trigger, many observed, was the global economic uncertainty amidst many countries floundering fortunes.
The open interest in gold, which is oftentimes seen as a gauge for market liquidty, increased by nearly 24% overall.
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