Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Tesla Robo Taxis are Coming THIS YEAR! - 16th June 24
Will NVDA Crash the Market? - 16th June 24
Inflation Is Dead! Or Is It? - 16th June 24
Investors Are Forever Blowing Bubbles - 16th June 24
Stock Market Investor Sentiment - 8th June 24
S&P 494 Stocks Then & Now - 8th June 24
As Stocks Bears Begin To Hibernate, It's Now Time To Worry About A Bear Market - 8th June 24
Gold, Silver and Crypto | How Charts Look Before US Dollar Meltdown - 8th June 24
Gold & Silver Get Slammed on Positive Economic Reports - 8th June 24
Gold Summer Doldrums - 8th June 24
S&P USD Correction - 7th June 24
Israel's Smoke and Mirrors Fake War on Gaza - 7th June 24
US Banking Crisis 2024 That No One Is Paying Attention To - 7th June 24
The Fed Leads and the Market Follows? It's a Big Fat MYTH - 7th June 24
How Much Gold Is There In the World? - 7th June 24
Is There a Financial Crisis Bubbling Under the Surface? - 7th June 24
Bitcoin Trend Forecast, Crypto's Exit Strategy - 31st May 24
Zimbabwe Officials Already Looking to Inflate New Gold-Backed Currency - 31st May 24
India Silver Imports Have Already Topped 2023 Total - 31st May 24
Gold Has Done Its Job – Isn’t That Enough? - 31st May 24
Gold Stocks Catching Up - 31st May 24
Time to take the RED Pill - 28th May 24
US Economy Slowing Slipping into Recession, But Not There Yet - 28th May 24
Gold vs. Silver – Very Important Medium-term Signal - 28th May 24
Is Gold Price Heading to $2,275 - 2,280? - 28th May 24
Stocks Bull Market Smoking Gun - 25th May 24
Congress Moves against Totalitarian Central Bank Digital Currency Schemes - 25th May 24
Government Tinkering With Prices Is Like Hiding All of the Street Signs - 25th May 24
Gold Mid Tier Mining Stocks Fundamentals - 25th May 24
Why US Interest Rates are a Nothing Burger - 24th May 24
Big Banks Are Pressuring The Fed To Losen Protection For Depositors - 24th May 24
Another Bank Failure: How to Tell if Your Bank is At Risk - 24th May 24
AI Stocks Portfolio and Tesla - 23rd May 24
All That Glitters Isn't Gold: Silver Has Outperformed Gold During This Gold Bull Run - 23rd May 24
Gold and Silver Expose Stock Market’s Phony Gains - 23rd May 24
S&P 500 Cyclical Relative Performance: Stocks Nearing Fully Valued - 23rd May 24
Nvidia NVDA Stock Earnings Rumble After Hours - 22nd May 24
Stock Market Trend Forecasts for 2024 and 2025 - 21st May 24
Silver Price Forecast: Trumpeting the Jubilee | Sovereign Debt Defaults - 21st May 24
Bitcoin Bull Market Bubble MANIA Rug Pulls 2024! - 19th May 24
Important Economic And Geopolitical Questions And Their Answers! - 19th May 24
Pakistan UN Ambassador Grows Some Balls Accuses Israel of Being Like Nazi Germany - 19th May 24
Could We See $27,000 Gold? - 19th May 24
Gold Mining Stocks Fundamentals - 19th May 24
The Gold and Silver Ship Will Set Sail! - 19th May 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Are we in the Midst of a New Gold Rally?

Commodities / Gold and Silver 2010 Mar 01, 2010 - 11:36 AM GMT

By: Miles_Banner


George Soros, the man who made over $1bn by short-selling the sterling pound in 1992, has more than doubled his holding of gold over the past few weeks.

Soros has been investing heavily in the U.S. listed exchange traded fund, SPDR Gold Trust, he now owns over 6 million shares worth around $680 million.

Why is he investing in gold?

Here at the goldpricetoday we have long held the view that gold is a key player in the currency markets, and as such, its performance and future forecasts should be measured against world currencies. Recent events involving big currencies has led to the gold price gaining momentum.

Gold has been lingering around $1,100 to $1,200 for quite some time. What could cause a gold rally from here?

Weaker fiat currencies look to cause the next gold rally.

In Europe relations have worsened between Germany and Greece. Greece have been trudging up Germanys world war 2 Nazi plundering of Greek resources. Whilst the Germans are claiming the Greeks conned their way into the euro.

A likely rescue package may have been severely damaged by these rather crude confrontations.

With George Soros being at the centre of a hedge against the Euro and Spain, Portugal and Ireland all in the que for bailout money, the Euro looks to be severely tested in the coming year.

Moneyweek report “further falls for the euro are on the cards. Morgan Stanley sees it sliding to $1,28, from around $1,35 now, over the next few months.”

The UK is fairing no better, with a budget shortfall of almost 13% of GDP. They’re right up there with the Greeks and the Spaniards in terms of budget deficit.

Mervyn King the Bank of England governor stated last week that the Bank may need to resume its quantitative easing programme. The diluting of fiat currencies by printing money is never a good thing for the strength of the nations currency.

What about the Dollar?

The dollar has long been the safe play when markets are turbulent. Indeed we did see a short rally last week, as you can see from the graph above (up to the 19th Feb). But the overall impetus is on a downward trend for the Dollar.

This fact is supported by the Chinese hedging against the dollar of late, see last weeks article. And Ben Bernanke stating on Thursday that its unlikely that U.S. interest rates will rise anytime soon.

So could gold be set to surge?

Gold seems to be the safest option out there, with investors opting for security; the gold price is in an ideal position to capitalise on the fears and weaknesses of fiat currencies


Digger Gold Price Today

P.S Digger writes a weekly email analysing the gold price and the gold industry. Visit Digger at Gold Price Today (

© 2010 Copyright Gold Price Today - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2022 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in