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FT.com: Soros sharpens gold bubble debate
Mr Soros is not alone in cutting his exposure to the yellow metal. Investors sold 2.5m ounces of gold through exchange traded funds in January and February as prices slid 8 per cent, and bankers say several hedge funds were also selling gold on the physical market.


The fact that the Fed is set to turn off the liquidity pumps is seen as a negative signal for gold. First, it suggests increased confidence in the economic outlook - typically a bearish indicator for the yellow metal.


Even the normally bullish World Gold Council, a mining industry-backed group, concedes that the end of QE2 poses a threat to gold. "If and when central banks stop QE and then start raising interest rates, that is obviously a challenging environment for all asset classes - including gold," says Marcus Grubb, managing director for investment.

tens of millions of people stand to see their lives ruined because the bureaucrats at the ECB don't understand introductory economics -- Dean Baker
by Migeru (migeru at eurotrib dot com) on Fri Dec 30th, 2011 at 05:27:11 AM EST
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