By Seana Smith
Gold is in focus after the
Federal Reserve released its April meeting minutes.
The price of the
metal, which shot up more than 20% since January 1st, is
under pressure after the central bank noted that a June rate hike would
be ‘appropriate’ should economic data continue to improve.
Gold (GCM16.CMX)
extended its losses after settling down $2.50 at $1,274.40 an ounce on
Wednesday. Prices in electronic trading dropped toward $1,260 shortly
after the release of the Fed minutes.
But big players may turn that around.
Anthem Blanchard, founder and
CEO of Anthem Vault, told Yahoo Finance’s Seana Smith that he doesn’t
expect gold prices to fall much further. In fact, he sees $1,250 as a
price floor for gold, and expects the metal to push even higher on the
heels of its best rally in three decades.
“$1,500
an ounce is not out of the realm of possibility… Seeing hedge funds
come into the market institutionally has been a big catalyst for the
price of gold,” said Blanchard.
A volatile market and global
growth concerns prompted prominent investors to bet on the precious
metal. Filings showed that billionaire George Soros, who sounded the
alarm on the global financial markets by saying that China’s debt-fueled
economy reminds him of the U.S. in 2007- 2008, has returned to the
metal for the first time in years. Other major investors that sought
safety in gold were Eaton Park and Bessemer Group.
“It
makes a lot of sense in this current environment. There’s a lot of
uncertainty with the Fed and I think that plays a big part,” said
Blanchard of Soros’ investment in the metal.
And hedge funds are not alone. According to the World Gold Council, demand for gold shot up 21% in the first quarter, second only to the fourth quarter of 2012.
沒有留言:
張貼留言