Market-makers Soros & Paulson made headlines this week after their Q2 filing revealed they had increased their stake in SPDR GLD shares, buying more of the exchange-traded metal; but what does it signal for the gold market when two billionaires, who have historically been on the “right” side of the market, make such a move? Jim Wyckoff helps answer that question in this week’s installment of “Technically Speaking”. According to Wyckoff, the move reaffirms the desirable qualities of owning gold, namely hedging and anti-inflationary properties, but more importantly it also signals that the gold market is yet to reach a top and that prices will continue rising; since Soros and Paulson were bargain hunting by waiting for prices to drop before increasing their stake, one can only assume that they expect to see further increases in the price of gold or increased inflation around the globe (and historically they haven’t been wrong). Despite the exciting move by the billionaires, gold is still very much stuck in a sideways trading pattern due to summer doldrums; we discuss this, as well as the ranges we can expect. Kitco News, August 16, 2012.
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