Reuters Reports of Gold Performance in Q2

Some recent reports show that major investors are still bullish on gold and continue to have a lot of faith in the market. According to Security and Exchange Commission’s 13-F filings of the US, John Paulson, the famous gold bull held assets worth $4.6 billion in the second quarter, in the SPDR Gold Trust’s exchange traded fund. The Commission providing the report, is the best source for information regarding bets placed by hedge funds.

Billionaire George Soros trimmed his gold holdings after gold coins had an extended rally. The same approach was followed by Jana Partners of Barry Rosenstein. The latter is an activist and investor.

Paul Touradji, runs one of the world’s largest hedge funds related to commodities. He sold his stake of SPDR Gold Trust completely. It is worth $25 million in the quarter. But the news had hardly an influence on gold prices. There was a rise of spot gold prices by 0.3%. An ounce of gold’s price reached to about $1769.7.

Janney Montgomery Scott manages assets worth $54 billion. The chief strategist of the investment sector of Janney Montgomery Scott, Mark Luschini goes on to say that according to Paulson’s suggestions, gold prices will rise further. The rise can be significant, according to Luschini.

Fed says that interest rates will be kept low for a couple of years. This implies that the monetary policy will be kept tight. This will lead to a decline in the market according to Luschini.

Sources known to Paulson’s firm reported that the performance of Paulson & Co was poor after July’s low performance. This news has been speculated by experts stating that, Paulson may have managed to strengthen his position in the SPDR Gold Trust. Analysts suggest that the turmoils in the investment market of liquid gold will be preferred by Paulson. This triggers recession worries even more with gold process hitting $1813 per ounce on August 11 in just about a month and a half.

Soros, reduced his SPDR Gold Trust investment by 13%. This decision is driven by previous losses of the trust. Reuters data revealed, that gold prices made a record by rising consecutively in 11 quarters. The record was hit in May with prices raised to $1575 per ounce. The second quarter was ended by gold by about 5% with spot prices at $1499.60 per ounce. While filing 13-Fs, investors need to release breakdowns.