Buyers Rush Into Gold During Record April Slump; Some Weren't So Happy
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SPDR Gold Shares (NYSE: GLD), Market Vectors Gold Miners ETF (NYSE: GDX), and iShares Gold Trust (NYSE: IAU) are all lower on the session amid data out Tuesday suggesting a surge in demand last month.
According to BullionVault, its Gold Investor Index rose to 58.6 in April, the highest its been in 16 months. The reading for March was 53.3. Readings above 50 indicates more buyers than sellers in the market.
Trading volume also rose 57 percent sequentially in April.
Buying of the precious metal came following a drastic sell-off last month. Reuters noted that the price of gold fell $225 per ounce from April 12th to the 16th, while the total price slipped about 7.8 percent for the month. Key factors in the slump were speculation that the Fed by curb open market activity early, as well as the ECB and IMF pressuring Cyprus to sell assets as part of a bailout plan.
Being pinched on the move last month was hedge fund titan John Paulson. His Gold Fund was said to plummet 27 percent last month and is now down about 47 percent in 2013. The fund ended April with $500 million in assets, down from $700 million at the end of March. Most of the assets in the fund are Paulson's own money.
Paulson's Advantage Plus Fund saw a 0.7 percent dip in April, but is up 3.9 percent for the year. The unlevered Advantage Fund fell 0.9 percent in April, but is 2.6 percent better in 2013.
Currently, June contracts are down $21.7 to $1,446.3 per ounce on the Comex.
According to BullionVault, its Gold Investor Index rose to 58.6 in April, the highest its been in 16 months. The reading for March was 53.3. Readings above 50 indicates more buyers than sellers in the market.
Trading volume also rose 57 percent sequentially in April.
Buying of the precious metal came following a drastic sell-off last month. Reuters noted that the price of gold fell $225 per ounce from April 12th to the 16th, while the total price slipped about 7.8 percent for the month. Key factors in the slump were speculation that the Fed by curb open market activity early, as well as the ECB and IMF pressuring Cyprus to sell assets as part of a bailout plan.
Being pinched on the move last month was hedge fund titan John Paulson. His Gold Fund was said to plummet 27 percent last month and is now down about 47 percent in 2013. The fund ended April with $500 million in assets, down from $700 million at the end of March. Most of the assets in the fund are Paulson's own money.
Paulson's Advantage Plus Fund saw a 0.7 percent dip in April, but is up 3.9 percent for the year. The unlevered Advantage Fund fell 0.9 percent in April, but is 2.6 percent better in 2013.
Currently, June contracts are down $21.7 to $1,446.3 per ounce on the Comex.
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