Hedge funds pile into gold on rebound hopes

Hedge funds have heavily upped exposure to gold in recent weeks, viewing the metal's poor relative performance year-to-date as a buying opportunity.

According to Bloomberg data from the US Commodity Futures Trading Commission, hedge fund investors have boosted their net long positions in gold by 26% over the past week, representing the fourth consecutive weekly increase. The yellow metal has sold off considerably in 2013, falling around 20% year-to-date to trade just above $1,300, amid concerns over a winding down of quantitative easing in the US. Last month gold slipped into bear market territory, having dropped 32% since its peak in September 2011, when an ounce was worth over $1,900. Hedge fund investors argue the US Federal...