Gold Posts 6th Consecutive Loss, Hedge Funds Still Interested?

Markets Wall St. Cheat Sheet

On Thursday, gold (NYSEARCA:GLD) futures for June delivery, the most active contract, declined $9.30 to close at $1,386.90 per ounce, while silver (NYSEARCA:SLV) futures for July traded flat to finish at $22.66. Gold has now closed lower for six consecutive sessions.

Continue Reading Below

Both precious metals continue to drift lower as sentiment remains weak. Credit Suisse recently said gold will trade down to $1,100 an ounce within a year, and sink below $1,000 an once within five years.

However, the pullback in precious metals during the first quarter appears to have attracted a popular hedge fund. Leon Cooperman’s Omega Advisors added new positions in the SPDR Gold Trust (NYSEARCA:GLD) and iShares Silver Trust (NYSEARCA:SLV), worth $13.9 million and $4.4 million, respectively. The firm also took a new position in the Market Vectors Gold Miners ETF (NYSEARCA:GDX) worth $4.4 million.

By the end of the day, the SPDR Gold Trust closed 0.40 percent lower, while the iShares Silver Trust gained 0.87 percent. Gold miners such as Yamana Gold (NYSE:AUY) and Newmont Mining (NYSE:NEM) both declined about half a percent.

Don’t Miss: Are Hedge Funds Dumping Gold?

Continue Reading Below

Follow Eric on Twitter (@Mr_Eric_WSCS)

If you would like to receive professional analysis on miners and other precious metal investments, we invite you to try our premium service free for 14 days.

Disclosure: Long EXK, AG, HL, PHYS

original article