Gold will drop in each of the next four quarters and reach a four-year low as reduced U.S. stimulus in response to faster economic growth curbs demand for bullion as a haven, the most accurate forecasters said.
An abatement in the wave of speculative selling pressure is allowing strong demand for physical gold from Asian buyers to assert its influence over the price and there is a growing case to be positive over the prospects of the yellow metal.
Filings show that John Paulson sold more than half of his gold ETF positions during Q2 while other hedge fund managers got rid of their gold ETF positions. On the other hand, the World Gold Council reported that consumers purchased 1,083.2 tons of gold in Q2.
Billionaire hedge fund manager John Paulson, who told investors as recently as last month that they should own gold, cut his holdings in the metal by more than half as prices plunged into a bear market.
Hedge funds cut wagers on a gold rally for the first time in three weeks on mounting speculation central banks will curb record stimulus and as this year’s slump in bullion spurred losses for billionaire John Paulson.
Hedge funds increased bets on lower gold prices after investors pulled a record $20.8 billion from bullion funds this year while BlackRock Inc., the world’s biggest money manager, said it’s still bullish.