SPDR Gold Trust (ETF) (NYSEARCA:GLD) has finally broken a streak of continued redemptions, and gold ETF’s real holdings were up. In the past week bullion holdings of SPDR Trust rose to 915.32 tons, from 909.33 metric tons. Yes, it is a small difference, a 0.4% rise, but significant since the ETF has taken straight down net outflows from November 2012 until last week. So this is the first weekly net inflow since November, according to Kitco and Reuters. Net outflows year to date from the gold ETF have been up to $19 billion.
It seems a trend in precious metals is about to change, and hedge funds increased their long positions in gold and silver according to the CFTC futures report for the week ending on Tuesday, August 13. Gold prices hit a two month high today at $1384/ounce.
Analysts think that this is a signal of a trend reversal after gold sell-off has largely run its course. Spot gold prices are expected to break through $1386/ounce and rise to $1403, says a Reuters analyst. World Gold Council said that the worst of redemptions are over, whereas a Commerzbank’s analyst also said that the trend will likely move more towards buying in the coming weeks.
Last week also saw disclosure of quarterly 13F holdings from hedge funds and we got to see whether bullish gold investors had reversed course or remained firm. Seth Klarman’s Baupost Group, which had lost a significant chunk in its gold related holdings in the last quarter, came off undeterred and bought even more of the precious metal in Q2.
George Soros took a U-turn on all of his gold holdings
George Soros, the kingpin of Wall Street, took a U-turn on all of his gold holdings that were known publicly. Soros Fund Management wrapped up its positions in gold ETFs and miners like Freeport-McMoRan Copper & Gold Inc. (NYSE:FCX), Market Vectors Gold Miners ETF (NYSEARCA:GDX) and SPDR Gold Trust (ETF) (NYSEARCA:GLD) whereas John Paulson scaled back his positions SPDR Gold Trust (ETF) (NYSEARCA:GLD) by roughly 50%.
So all in all a good day for gold bulls.