Bet on Europe Through Gold?
Last Friday we heard that John Paulson upped his position in gold to 44% of assets. This sort of position is unusual for a big-time fund manager and it looks like the actions of a desperate trader doubling down on a losing trade. But we do see where he's trying to go with this.
We're not sure about John Paulson's state of mind, but it might be a good time to take another look at the state of the gold trade. From a technA ical perspective there is good news and bad news for Paulson in regards to gold. The primary long-term price structure for gold remains bullish, despite the bearish headwinds created by a rising dollar. That's the good news. The bad news is that the dollar index has not broken down yet and is still creating bearish pressure on the gold market. The dollar has to break down for the gold trade to work....313 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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