The fund managed by billionaire and long term gold bull has retained its stake in GLD possibly because Federal Reserve is unlikely to announce tapering of its stimulus measures and continue with bond buying, Reuters reported.
LONDON: Gold exchange traded funds seem to be back in favour as World Gold Council data shows net outlfows were 119 tons in the third quarter of 2013 compared to 402 tons in Q2. Meanwhile, in a filing with the US Securities and Exchange Commission (SEC), leading hedge fund Paulson & Co has maintained its stake in SPDR Gold Trust (NYSE:GLD) unchanged at 10.2 mn shares as on September 30, same as on June 30 this year.
The fund managed by billionaire and long term gold bull has retained its stake in GLD possibly because Federal Reserve is unlikely to announce tapering of its stimulus measures and continue with bond buying, Reuters reported.
Investors pay close attention to the quarterly filings by Paulson and other notable hedge fund managers because they provide insight into whether the so-called "smart money" has lost faith in gold as a hedge against inflation and economic uncertainty, the report added.
The price of gold gained 8 percent during the third quarter, its largest quarterly gain in a year, thanks to a sharp rebound rally following a record 23 percent drop in the second quarter in which it posted a $225 two-day dive in mid April.
Meanwhile, the World Gold Council Q3 market trends showed a resilient gold demand amidst competition from other assets although demand fell 21% on a year-on-year basis.
"Overall demand for gold in Q3 2013 was 869 tonnes (t), down 21% on the same period a year ago. However, demand remained strong across most countries and sectors. The exceptions were gold-backed ETFs, which had net outflows of 119t this quarter, compared to 402t in Q2 2013, and India where the result of government intervention in the Indian gold market was to reduce demand by 71t this quarter," WGC report added.
courtesy of bullionstreet.com
No comments:
Post a Comment