Paulson’s Exit May Signal Bullish Return For Gold
Mingze Wu | Aug 16, 2013 02:16AM ET
News of high-profile investors like billionaire John Paulson dramatically exiting positions in gold is positive for bullion as it implies that the worst of institutional selling could be over, analysts tell CNBC.
“The reason for the big drop in gold (in recent months) primarily was large scale selling out of exchange traded funds by big investors. I think those big ETF outflows have finished for the moment. They got it right, they acted early,” Ric Spooner, chief market analyst for CMC Markets, told CNBC.
“Without that (ETF selling), we could see a rally until we get a high enough price for them to come back in as sellers,” he said.
Spooner sees further upside for gold, which hit a two-month high of $1,372 an ounce on Thursday. He is calling for the precious metal to trade in a range of $1420-1490 an ounce in the coming weeks.
“People who needed to get out of gold to balance positions, have likely done so. From here on, you tend to have more opportunistic sellers who want to lighten their portfolios or lock in profits from recent gains,” he said.
Original post
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.