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Byline: PAUL KATZEFF
Sector funds raced out of the 2006 starting gate. All categories advanced fast in January, paced by gold funds' and natural resource funds' double-digit
gains.
Gold funds soared 19.36% on average, according to Lipper.
Gold's glitter was buffed by a surge in new investors. Exchange traded funds focused on the precious metal continued to grow.
Also, speculative investors, including hedge funds and futures traders, kept betting on gold, says Simon Fenwick, associate manager of $1 billion First Eagle Gold Fund.
Supply constraints also contributed to gold funds' luster.