(Bloomberg) -- Hedge funds are the most bullish on gold in more than two years, betting the metal’s allure will strengthen as slowing economies in Europe and Asia threaten U.S. expansion.
Speculators increased their net-long position by 80 percent this year, U.S. government data show. The U.S. economy expanded at a slower-than-forecast pace in the fourth quarter and Federal Reserve officials acknowledged global risks at the end of their policy meeting last week.
Weaker foreign expansion has increased speculation among investors that the Fed will wait longer before raising U.S. interest rates.
Soros Fund Management more than doubled its investment in the SPDR Gold Trust (GLD) to 884,400 shares, a U.S. Securities and Exchange Commission filing for the quarter holdings showed. (newsmax 3/3/15)
Paulson & Co. increased its holdings by 26 percent to 21.8 million shares.
Between these two funds alone, that’s a total of $3.5 billion secured in the yellow metal.