Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Gold prices drop after Soros dumps gold ETPs

Gold prices drop after Soros dumps gold ETPs

Gold prices underwent sharp correction today after regulatory filings revealed that billionaire and long time gold bull George Soros offloaded nearly all of his gold holdings in the first quarter. Soros held a US$800 million stake in gold backed exchange traded funds, including SPDR Gold Trust (NYSE:GLD) the world’s largest gold backed exchange traded fund, 99 percent of which has now been sold.

However, hedge fund manager John Paulson has stayed put, having refrained from dumping the yellow metal. Paulson's stake in SPDR is worth US$4.4 billion.

In addition to that, gold was pushed down by a stronger US dollar. The American currency has gained against the euro, which has been weakened by the arrest of International Monetary Fund (IMF) chairman Dominique Strauss-Kahn on sexual assault charges in the US.

Gold is seen as an alternative asset to the US dollar and has an inverse relationship with the American currency.

Gold last traded at US$1,482/oz. Silver followed, slipping to US$33.45/oz, while platinum rose to US$1,757/oz.

Gold last traded at US$1,482/oz. Silver followed, slipping to US$33.45/oz, while platinum rose to US$1,757/oz.

Companies focused on precious metals were in decline. Fresnillo (LON:FRES) and Lonmin (LON:FRES) shed 2.8 percent and 1 percent respectively. Randgold Resources (LON:RRS) was sitting just below the opening level.

Base metal miners pulled back following a positive start. Eurasian Natural Resources (LON:ENRC) and Kazakhmys (LON:KAZ) dropped 1.7 percent and 1 percent. Xstrata (LON:XTA) did better, tacking on 1 percent.



Register here to be notified of future GOLD Company articles
View full GOLD profile

GOLD Timeline

Newswire
January 04 2012

Related Articles

Picture of gold and dollars
August 03 2016
Earnings for the year to June will be at least double last year with production also ahead of target it said in August
Gold-plus-dollars.jpg
June 23 2016
Greatland Gold's share price has surged in recent months as new money has come in and new exploration plans put in place
gold-pour.jpg
February 17 2016
Shares in Condor Gold have doubled in the past four weeks, following two key announcements and a resurgence in the gold price this year.

© Proactive Investors 2016

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.