Hedge funds are pulling out of gold bets as more exciting moves in equities and cryptocurrencies make safe-haven investments look boring.
Money managers cut their bets on a bullion rally at the fastest pace in 5 months as prices head for their worst quarterly loss in a year. Speculators are throwing in the towel as the metal failed to sustain the gains that took futures to a 1-year high in September 2017.
While the metal posted some modest gains recently, its performance still pales in comparison to the record-breaking rally of US equity indexes and the dizzying surge in bitcoin. Synchronized global growth and prospects for higher US interest rates hurt the appeal of non-interest bearing gold, while geopolitical tensions failed to spur enough haven demand.
