Hedge funds flock to gold amid global chaos

The Fed raised rates for the fourth time this year and lowered its forecast for hikes next year to two from three. Currency traders took the move as dovish, sending the dollar lower. That created a bullish spark for gold that sent prices above the 20
The Fed raised rates for the fourth time this year and lowered its forecast for hikes next year to two from three. Currency traders took the move as dovish, sending the dollar lower. That created a bullish spark for gold that sent prices above the 200-day moving average.PHOTO: REUTERS

NEW YORK • Forget frankincense or myrrh - chaos in global markets makes gold the holiday asset hedge funds are getting behind.

Money managers are the most bullish they have been on bullion in half a year, amid a multitude of threats that could slow economic growth and deepen the plunge for equities.

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A version of this article appeared in the print edition of The Straits Times on December 25, 2018, with the headline 'Hedge funds flock to gold amid global chaos'. Print Edition | Subscribe