Hedge funds lose their confidence in precious metals, as gold has already lost its position among managers and is not alone. Hedge funds and other big speculators come out of the market, preparing to tighten monetary policy in the US and Western Europe.
Thus, in the week ending July 11, the long positions that have been set for a rise in the price of gold have reached their lowest point for the past 17 months. Shortly after, precious metal grew slightly because of government figures in the US, which showed that the change in consumer prices was too low, supporting the speculation that it may take longer for the Federal Reserve to achieve the set goals.
The silver also loses its luster in the eyes of hedge fund managers. The positions of the cheaper cousin of gold changed sharply from short to long, and the market was the most “bearish” since August 2015.
Similar is the situation with platinum. The investors are betting that the world is already peaking in the automotive market. Precious metal is used in the production of catalysts.