by Joe Deaux
Bloomberg.com
When it comes to gold, hedge funds are betting that what goes up will continue to go up.
Even after bullion’s best start to a year since at least 1975, investors are positioning themselves for more gains. Money managers increased their wagers on a price rally to the highest since 2012, taking their optimism to a level last seen before a three-year bear market started.
[…] The metal has jumped 17 percent this year. Federal Reserve officials are cautious about raising U.S. interest rates amid persistent risks facing the global outlook. Investors are snapping up bullion as the shaky economy picture spurs haven demand, while low borrowing costs keep the metal competitive against interest-bearing assets.