Soros Buying Gold As Record Prices Seen On Stimulus

Gold Downgraded By UBS Analyst: But Now May Be Time To Buy Gold Mining Company Stocks

The New York-based hedge fund company reduced its investments in Anglogold Ashanti Ltd. (ANG) and Gold Fields Ltd., the third- and fourth-biggest producers. Armel Leslie of Walek & Associates, a spokesman for Paulsons fund, declined to comment. Paul Touradjis Touradji Capital Management LP sold all of its 82,000 shares in the SPDR Gold Trust in the third quarter, according to an SEC filing. Lone Pine Capital LLC, the hedge fund run by Stephen Mandel Jr., cut its stake by 31 percent to 2.6 million shares, and Dan Loebs Third Point LLC lowered its bet by 10 percent to 130,000 shares, filings showed last week. Officials from all three companies declined to comment.

But in the last six days, the precious metal seems to have regained some of its luster, rising 5.8%. Last week, gold recorded its biggest weekly percentage gain since 2011, and it came after four weeks in a row of losses. Some believe this could be the beginning of a new momentum. "We're in process of finding a bottom," said Jeff Nichols, managing director of American Precious Metals Advisors. Since April, investors have abandoned gold in favor of the stock market, where they have chased higher returns.

Gold: Time to buy now?

The failure to venture beyond $1360 [per ounce] was a clear testament to much weaker sentiment than anticipated. Demand for physical gold from emerging markets, traditionally a support for gold, has been scarce, too. Indian import regulations have constrained supplies there and driven local prices for gold through the roof. In recent weeks, those betting on gold were reluctant to increase their exposure, and those that did bet on gold used brief rallies to quickly book profits, according to Teves. The arduous task of absorbing investor selling falls on Chinas shoulders, she wrote. Other analysts have highlighted Chinese consumer demand as the single most bullish factor for gold this year , in an otherwise grim year for the metal.