According to the good people at Bloomberg gold is stuck in
the longest slump in a decade as investors shun bullion for the dollar and
bonds, just seven months after Bank of America Corp. said Europe’s debt crisis
would send prices to a record $2,000 an ounce.
The bank was joined by Goldman Sachs Group Inc., Morgan
Stanley and Barclays Plc in urging investors to buy in December and January.
Now, after gold fell 10 percent in a four-month slide through May, they say
prices will rebound this year or next as the Federal Reserve shores up the
world’s biggest economy by easing monetary policy and devaluing the dollar.
Billionaire George Soros bought more in the first quarter
and hedge-fund manager John Paulson held on to the biggest stake in the SPDR
Gold Trust, the largest exchange-traded product backed by bullion, Securities
and Exchange Commission filings show. Some investors are refusing to capitulate
even after failed elections in Greece drove the euro to a two-year low against
the dollar and gold slumped as much as 21 percent in December from the record
$1,923.70 set in September…
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