Just cleared from tray
On Feb 28, 2013, at 9:44 PM, j wrote:
I feel bad for the masses who are being had
I shout at the top of my lungs and no one can hear
I watch, and towards slaughter all marches
I wave, then I turn away
Amen
Sent from my iPad
On Feb 28, 2013, at 2:49 PM B wrote:
Love all the bearish chatter.
-----Original Message-----
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Sent: Thursday, February 28, 2013 2:44 PMSubject: 1BN) Investors Dumping Gold Means Slump to $1,400: Chart of the1BN) Investors Dumping Gold Means Slump to $1,400: Chart of the DayInvestors Dumping Gold Means Slump to $1,400: Chart of the Day
2013-02-28 00:00:00.6 GMT
By Debarati Roy Feb. 28 (Bloomberg) -- Gold prices that are already heading for the longest run of monthly losses in 16 years are poised for more declines as investors abandon holdings of the biggest exchange-traded fund backed by the metal.
The CHART OF THE DAY shows holdings of the SPDR Gold Trust have dropped 5.2 percent this month to the lowest since August.
Hedge funds and other large speculators cut bets on a rally by the most since 2007 last week. The slump in investor demand signals that prices may retreat 12 percent to $1,400 an ounce by the end of the third quarter, said Sterling Smith, a Chicago- based commodity futures specialist at Citigroup Global Markets Inc.
“Liquidation of physical gold is the hallmark of bearishness,” Smith said in a telephone interview. “The improving economic conditions are pushing people to more remunerative assets like equities.”
The cycle for gold prices, which climbed for 12 straight years, has probably turned as the recovery in the U.S. economy gathers momentum and ETF holdings slump, Goldman Sachs Group Inc. said in a report on Feb. 25. Billionaire investors George Soros and Louis Moore Bacon cut their stakes in gold ETPs last quarter, government filings showed this month.
Gold futures for April delivery fell 1.2 percent to
$1,595.70 on the Comex in New York yesterday. This month, the price has declined 4 percent, poised for the fifth straight drop and the longest slump since January 1997.
Money managers and other large speculators reduced their net-long position in gold futures and options by 40 percent in the week ended Feb. 19, the biggest drop since July 31, 2007, government data show.
For Related News and Information:
Top commodity reports: CTOP <GO>
Other commodity chart stories: TNI CMD CHART <GO> Precious Metals: METL <GO>
--Editors: Millie Munshi, Thomas Galatola
To contact the reporter on this story:
Debarati Roy in New York at +1-212-617-5307 or droy5@bloomberg.net
To contact the editor responsible for this story:
Steve Stroth at +1-312-443-5931 or
sstroth@bloomberg.net
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