Buy signal? Gold Assets Drop Most in a Year
truthingold.com / Dave in Denver / October 21, 2014 at 08:37
Holdings in the SPDR Gold Trust, the biggest exchange-traded product backed by the metal, shrank by the most in 12 months as investors cut assets even after prices rebounded from the lowest level this year.
The assets contracted 1.2 percent to 751.96 metric tons yesterday, the least since November 2008, according to data on the fund’s website. Holdings in the fund, in which billionaire John Paulson is the biggest investor, are 5.8 percent lower this year after shrinking 41 percent in 2013.
Gold climbed last week as global equities tumbled and the dollar fell on concern that slowing global growth from Europe to China may prompt the Federal Reserve to delay interest-rate rises. Shares then rallied from an eight-month low on Oct. 16 as optimism over U.S. corporate earnings spurred a rebound. Goldman Sachs Group Inc. and Societe Generale SA still expect lower gold prices as the U.S. recovers and the Fed ends bond-buying.
“People are gradually beginning to believe that the stock market is stabilizing,” said Michael Gayed, chief investment strategist at Pension Partners LLC in New York, who helps to manage $220 million. “Also, the perception that the U.S. economy is doing well is lowering interest in gold.”
