Gamble exit from the euro hedge fund exchange

The crash sly, in addition to hedge funds to exit the concerns of the euro area to Greece, aroused Peng Pai influx of speculative short selling of gold, but also because hedge funds tend to slowdown of global demand for physical gold have short selling arbitrage.

"Corner gold bulls tend to not slow down." A commodity investment hedge fund trader Timothy W. Tong revealed, even if the price of COMEX gold futures fell more than 8.1%, led to the gold bull protection fund of hedge funds depleted.

Create most of the hedge fund with the euro exchange rate fell, since May is the coherence of the euro and the gold trend is a sharp growth, and thus have to dominate both the two down the process spreads to expand, reverse arbitrage.

Timothy W. Tong, for example, more popular, due to the debt crisis in Europe to upgrade to first force the euro exchange rate crash, hedge funds will have to play a moment, aiming for the euro exchange rate fell more than gold, increased short selling of gold positions, promote the trend of gold and the euro fell to reach a fair coherence interval, speculative gains earned by short selling of gold.

CFTC data show that as of May 8 when the week, gold futures net short positions of hedge fund assets based RBI institutions jumped 19,684 last week (1 to 100 troy ounces).

Hedge fund "new thinking"

Reporter to appreciate in the short selling of Euro gold influx of sly, is part of the hedge funds turn Fools euro area prepared to save the city "is further exacerbated by short selling of gold efforts.

"Even some of the hedge funds trust the euro-zone countries would be extremely ribavirin Greece to stay in the euro area, but solidarity with the preparation of the euro-zone countries unlucky in the rebound of the euro." Timothy W. Tong revealed at the present hedge funds feeling the euro-zone countries rescue Greece's important preparation is divided into two, one landed the Greig interest rate landing the euro area financial capital money, and second, the European Central Bank to perform a new round of LTRO (long-term refinancing to dominate), the supply of aid and to the Greek; but both in the preparation of an important principle growth in the euro dealings scale, unlucky in the rebound of the euro, "hedge funds dominate the euro fell short selling of gold is more control."

Often account deficit inexhaustible expand Chong documentary imports of gold led to one of the world's largest gold consumer, India had released the announced tariffs on imports of gold in India to advance to the 4%, resulting in Indian imports of gold in April dropped to about 35 tons, The older a year earlier, landing nearly 55 tons