Gold / GLD 10US$

Gold / GLD 10US$: Billionaire investors George Soros and Louis Moore Bacon cut their stakes in ETF products backed by gold in 4Q12. Prices dropped 5.5%, the most in more than 8 years, as signs of improving economic growth reduced the appeal of the precious metal as a haven Soros Fund Mgt reduced its invmt in the SPDR Gold Trust, the biggest fund backed by the metal, by 55% qoq to 600k shares as of Dec. 31, according to SEC filings. Bacon’s Moore Capital Mgt sold its entire stake in the SPDR fund and lowered holdings in the Sprott Physical Gold Trust. Other funds like Scout Capital and Lone Pine Capital also sold their entire stake in SPDR Gold Trust. However John Paulson, via his Paulson & Co., the largest investor in SPDR, maintained his stake at 21.8m shares. UBS reduced its one-month TP today by 6.8%, saying economic optimism “takes the shine off defensive assets,” including bullion. Foxhall Capital Mgt notes, the economy is looking better, and people are moving to more remunerative assets like equities. “A lot of people have lightened up on gold.” Commerzbank Technical Analysis says gold may drop below US$1,600/oz in the next couple of weeks after breaking a key support level. The house notes, bullion for immediate delivery has fallen below the 2012-13 support line of US$1,641.83 and will then test the Jan low of US$1,625.85. “The $1,625.85 level remains key for the medium-term trend. Failure here should provoke a sell-off to below US$1,600 level before the precious metal levels out and starts rising again.” On a weekly basis, gold has fallen through the 2008-13 uptrend line at US$1,651.66 and may head down toward the US$1,600 level.