Hedge funds go all in on gold

Gold’s spectacular rally is just getting started if hedge funds have their way. Prices are already at the highest in more than six years, and Goldman Sachs Group and Citigroup predict bullion could climb more than 6% to $1,600 an ounce in as little as six months. Money managers are going all in, raising their wagers on a rally to the highest since 2016.

Gold’s value as a haven is shining amid mounting global uncertainty over the US-China trade war and slowing economic growth. Donald Trump has escalated his spat with Beijing, and his Treasury Department formally labeled China a currency manipulator. Trump has also pressed for the Federal Reserve to further cut interest rates and weaken the dollar. Meanwhile, $15 trillion of debt globally have negative yields, and investor demand shows no sign of abating.