Hedge funds raised bullish gold wagers to a three-month high as signs of slowing U.S. economic growth spurred demand for haven assets. Billionaire John Paulson maintained his bullion holdings last quarter.
Billionaire hedge fund manager John Paulson, who backed away from his bullish bet on gold last year, kept his holdings of the metal unchanged in the fourth quarter as prices capped the biggest annual drop since 1981.
Gold posted the longest rally since July 2011, topping $1,300 an ounce for the first time since November, after signs of faltering U.S. economic growth added to the increasing investor appetite for haven assets.
Gold capped the longest rally since August 2012 as Federal Reserve Chairman Janet Yellen said more work is needed to restore the labor market, signaling monetary policy will boost demand for alternative assets.
Canadian stocks rose a sixth day, the longest streak of the year, as gold advanced amid growing demand in the U.S. and China while Federal Reserve Chairman Janet Yellen pledged to reduce stimulus in “measured steps.”