Hedge funds withdraw but could 2017 see a gold rebound?
Samuel Gee, News Editor
19 Dec 2016, 3:05 p.m.
After five consecutive weeks of losses for gold, hedge funds have decreased holdings in the precious metal to their lowest level since February.
Increasing interest rates, a stronger dollar, and higher bond yields have conspired to weaken demand for gold in recent weeks, as lowered expectations for the yellow metal in 2017 have seen many investors look to reduce their exposure to gold.
However, with the uncertainty that caused gold’s bullish year in 2016 still a likely feature of next year and beyond, there is reason to believe that a rebound in precious metals is still possible.