Credit Suisse analyst David Sneddon says the price of gold is poised to move sharply higher.
“If we look at the (rising) momentum chart ... it suggests to us that price should follow suit,” he told CNBC.
“We think gold is going all the way back up to $1,227.”
Gold denominated in euros shows a much more bullish position than denominated in dollars, Sneddon says. “Gold in euros has moved to an all time high with all the euro weakness that’s been going on,” Sneddon observes.
Recent regulatory filings show that legendary hedge fund manager boosted his gold holdings substantially during the fourth quarter of last year.
Soros Fund Management increased its shares of the SPDR Gold Trust to $6.2 million as of the end of 2009, up from 2.5 million shares at the end of the third quarter, a recent regulatory filing showed. Read John Spence's ETF Investing.
The investment in the globe's biggest physically backed gold exchange-traded fund was valued at $663 million, according to the document filed with the U.S. Securities and Exchange Commission.
Gold priced in euros reached a record today as European Union finance ministers failed to agree on measures to help Greece reduce its budget deficit, Bloomberg reports.
The precious metal climbed to a four-week high in New York, before paring gains, on speculation that wider Greek budget deficits will spur demand for the metal as an alternative to holding currency.
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