George Soros rumored ‘long gild, short oil’. that was what he said about the gold price compared to the oil price. The price of gold dropped 1.3% at lunchtime in London on Friday, sliding into the US open – and heading for its first weekly loss in five – as world stock markets ticked higher whereas The US Dollar rose on the forex market. Crude oil futures jumped 2.1% – “a dead cat bounce,” according to one trader – after suffering their worst drop since Dec. 2004 so far this week.
George Soros – co-founder of the Quantum Fund with the legendary Jim Rogers in the 1970s – has reportedly traded this gold bull market all through this decade, adding to the $100 million profit he made from gold in 1993. “Gold has had a strong run from July 8 to 15,” said David Thurtell of BNP Paribas to Bloomberg earlier, “and you’re always going to have some profit taking after that.”
“The decline in oil yesterday supported capital flows into US equity markets,” says Manqoba Madinane at Standard Bank in Johannesburg, “which supported the Dollar through the New York trading session.