Hedge funds bet on gold as demand rises

[NEW YORK] Hedge funds raised bullish gold wagers by the most since July and sold copper holdings as emerging-market turmoil boosted concern that the global economy will slow and increased demand for precious metals as a haven.

The net-long position in gold jumped 40 per cent to 60,672 futures and options in the week ended Jan 28, US Commodity Futures Trading Commission (CFTC) data show. Long wagers rose 5.5 per cent to the highest since September, and short bets dropped 16 per cent. Net-bullish copper holdings tumbled 62 per cent as shorts gained by the most in 11 weeks.

About US$1.9 trillion was erased from the value of global equities last month as China's economy slowed and the Federal Reserve further cut stimulus on Jan 29.