Funds Are Shorting Gold, Should you?

Gold has opened in green on Wednesday, currently trading at around $1260, up by 0.1%. In addition, the price for Gold has been falling for some time, losing around 9% over the past year. However, many investors, including hedge funds have been shorting gold recently, according to CNBC. Jackie DeAngelis and the Futures Now Traders, Rich Ilczyszyn, and Anthony Grisanti, have looked into this commodity and tried to explain why the funds have been shorting it. The speculators have been shorting Gold, therefore, Gold net longs have declined to the lowest level since January, Jackie DeAngelis stated.

gold bars at Fed New York

Futures Now Traders have a divided opinion on the Gold Market. From one side, Mr.  Ilczyszyn considers that the Gold is oversold and therefore it might go up. At the same time, the quantitative easing promoted by the European Central Bank, might pick up the gold prices in Euro, which therefore could lead to an increase in the U.S. as well. In this way, a good point for shorting gold would be at around $1300, which means that investors should wait for the price to climb a little bit more.

However, the Mr. Grisanti thinks that the ECB policy is aimed to weaken the Euro, in comparison to a stronger Dollar, therefore, if the Dollar gets stronger, the price for Gold will decline. He is short Gold, having a stop at $1271, with the sell point starting at $1264 and the target being $1242. Mr. Ilczyszyn, however, stated that in his experience, he has seen both the Dollar and the Gold moving up.

Watch the full video below:

Yesterday, Simona Gambarini, the associate director of research at ETF Securities, also has discussed the gold prices in an interview with CNBC. She stated that even though investors are moving from Gold ETFs into more cyclical commodities, Gold still remains a good asset for insurance reasons rather than for gaining profits.

Disclosure: none

Biotech Insider Alert - $6 Stock To Hit $40

$200 Million Dollar Healthcare Hedge Fund's #1 Best Idea Right Now

The best healthcare hedge fund out there right now is one of the largest shareholders in this biotech stock. The fund returned more than 20% in each of the last 2 years with a virtually fully hedged portfolio, and it's sending out a BUY signal on this biotech stock. Get your FREE REPORT today (retail value of $300)

This is a FREE report from Insider Monkey. Credit Card is NOT required.
Comments
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

The Greatest Directors in the World

Largest Animals in the World

World’s Most Expensive Desserts

Best Selling Comic Books of All Time

A-list Actors who Sabotaged Their Career

Rappers With a College Degree

The Best Jazz Albums of all Time

The Most Influential Jazz Musicians

The World’s Most Famous Photographers

The Best Oscar-Winning Songs

Most Influential Choreographers Ever

Most Expensive Department Stores in the World

The Most Expensive Stolen Paintings in the World

The World’s Most Expensive Teas

Top Oscar Record Holders

The Most Expensive Flowers in the World

Countries With a Booming Film Industry

Most Expensive Cupcakes in the World

Uncommon European Escapes

The Most Stolen Artists in History

Best Travel Destinations in Australia

World’s Most Expensive Musical Instruments

World’s Most Famous Animals

Most Expensive Cakes in the World

Most Expensive Kosher Champagne in the World

Most Expensive Kosher Wine in the World

The Most Surprisingly Dark Fairy Tales

Most Popular Travel Destinations in Asia

The 10 Most Expensive Dresses Ever Worn to the Oscars

World’s Most Visited Art Museums

Best Countries for Photographers to Work in

Best Paid Jobs in the Film Industry

The Most Renowned Recovered Paintings Ever

Child Stars That Turned out Just Fine

Books That Were Banned in the Past Century

World’s Richest Dancers

Best Remedies against Bad Breath

Foods That Improve Your Skin Texture

Best-Selling Children’s Books of all Time

Foods That Boost Your Libido

Best-Selling Books of all Time

The Most Expensive Academy Awards Jewelry in History

Most Expensive Japanese Restaurant In New York City

The Best B-Boy Movies

Most Awesome Hip Hop Documentaries

Foods That Stain Your Teeth

Richest Doctors in the World

The Best Movie Sountracks Ever

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 129% in 2.5 years!! Wondering How?

Download a complete edition of our newsletter for free!