Hedge Funds Sell Gold
Hedge Funds, Soros Sell Off Gold Holdings
Hedge funds and investor George Soros's fund combined to push down the price of gold. The funds recently disclosed that they had cut their gold positions. Many hedge funds have been riding the wave of high gold prices through investments in gold trusts.
Gold for May delivery settled down $10.60, or 0.7%, at $1,479.80 a troy ounce on the Comex division of the New York Mercantile Exchange. The most actively traded gold contract, for June delivery, ended down $10.60, or 0.7%, at $1,480.00 a troy ounce.
Soros Fund Management said late Monday in a securities filing that it sold 99% of its stake, or 4.7 million shares, in exchange-traded fund SPDR Gold Trust (GLD) in the first quarter.
The shares sold were worth $680 million based on Monday's prices. However, gold prices averaged slightly less in the first quarter, so Soros's take could have been smaller.
As of March 31, Soros held just 49,400 shares valued at $6.9 million of the fund, which is backed by physical gold.
The news sapped confidence among gold investors because Soros had led the charge on gold over the past two years, aggressively purchasing the precious metal even after calling it "the ultimate asset bubble." Source
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