Funds bet gravity-defying gold rally has more to run

When it comes to gold, hedge funds are betting that what goes up will continue to go up.

Even after bullion’s best start to a year since at least 1975, investors are positioning themselves for more gains. Money managers increased their wagers on a price rally to the highest since 2012.

The metal has jumped 17% this year. US Federal Reserve officials are cautious about raising interest rates.