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Hedge Funds and Other Speculators Misjudged Gold Prices
According to Bloomberg News, hedge funds and other speculators misjudged gold prices. This is the second time in three weeks gold prices have been misjudged. The president of New York-based Platinum Partners, Uri Landesman, who helps manage about $1.35 billion of assets, commented; “There’s a lot of risk to these markets.” Landsman continued to report to Bloomberg News; “There’s sort of a 50/50 chance we go to $1,400 or back to $1,200. It’s really a hard call to make. My gut feeling is that the equity markets turn down sometime soon. I think that gold could once again become a safe haven.”
Prices remain 32 percent below the record $1,923.70 reached in September 2011. last year as some investors lost faith in gold as a store of value. It has been reported that, from December 2008 to June 2011, gold rose 70 percent as the Fed has pumped more than $2 trillion into the financial system by purchasing debt. The Labor Department reported that, U.S. employers expanded payrolls by 192,000 jobs in March.
UK Finance has reported that the long-term outlook for gold is uncertain in the US and that the Federal Reserve appears likely to continue its tapering program unless economic data gets much worse, meanwhile gold demand in China has weakened this year, and the price of gold has risen.
Image Credit: www.midasletter.com
Hedge Funds and Other Speculators Misjudged Gold Prices by Jaan