Hedge Funds Boost Bearish Gold Bets Before JPMorgan, Citi Exit

  • Money managers’ wagers on price drop reach highest since June
  • Sentiment around U.S.-China trade talks drive gold: Invesco
Photographer: Andrey Rudakov/Bloomberg
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Glimmers of global optimism are casting a pall over gold.

J.P. Morgan Securities unwound its gold hedge because of “signs of a cyclical recovery, easing geopolitical tensions, synchronized monetary easing,” the bank’s asset-allocation team said Thursday. Citigroup Inc. strategists abandoned a long position in gold, in their asset-allocation note Thursday. Earlier that week, money managers boosted their bearish wagers on the metal.