Gold hit a record high Tuesday of $ 1,274.75 an ounce, drifted lower on Wednesday as the dollar rose by 3% against the yen, when Japan intervened in the currency market for the first time in six years. The yellow metal quickly found support just below $ 1,270 an ounce, still near its record high.
Gold was also weighed by fresh comments from billionaire George Soros. In an exclusive interview on 15 September, Thompson Reuters (clip below), Soros says that gold die”letzte bubble, “and that” this is a time of great uncertainty, so “
[In a deflationary environment] is the only real gold bull market right now. It has a new high yesterday. Under current conditions continue. It’s interesting to see if there is a decline in the coming weeks, because almost everything that a new high and is almost immediately disappointed. “
“I called the ultimate gold bubble, which means but it is not safe and it will not last forever.”
Soros first the “ultimate bubble” comment about gold in January at the World Economic Forum in Davos, Switzerland. But his hedge fund – Soros Fund Management LLC – still owned 5.24 million shares of the SPDR Gold Trust (GLD), an investment of around 650 million U.S. dollars and investment in mining gold and other minerals in value of nearly 250,000 U.S. dollars, 000, June 30. Soros was the third largest fund in the Gold Trust ETF at the end of the second quarter.
So it seems Mr. Soros still sees upside in gold, but the burst of volatility of the metal warning instead of a bubble. In short, the current global macroeconomic environment – and supply and demand is also very supportive of gold – synchronized prospects for a slowdown in growth in combination with the current financial crisis.
From a technical standpoint (see graph), the field seems to be the next resistance with the support around $ 1,255.