Ever since gold briefly crossed $1300 per ounce last week, the price of the precious metal has fallen due to profit taking, and a massive effort by the central banks to suppress the price through shorting the market with near record naked contracts. But this has only led to a consolidating of the market around $1250, and a removal of most weak hand investors during the last run-up.
And it is because of the strength of this consolidation that on May 11, a well known hedge fund manager along with bullion bank J.P. Morgan both announced validation that gold is well into, and definitely in the next Bull Market.
Billionaire hedge fund manager Paul Singer said that gold’s best quarter in 30 years is probably just the beginning of a rebound as global investors -- including Stan Druckenmiller -- weigh the ramifications of unprecedented monetary easing on inflation.
“It makes a great deal of sense to own gold. Other investors may be finally starting to agree,” Singer wrote in an April 28 letter to clients. “Investors have increasingly started processing the fact that the world’s central bankers are completely focused on debasing their currencies.” - Billionaire Paul Singer, Bloomberg
Gold prices are surging this year, and that has one of Wall Street's largest banks flocking to the yellow metal.
"We're recommending our clients to position for a new and very long bull market for gold," JPMorgan Private Bank's Solita Marcelli said Tuesday on CNBC's "Futures Now." After seeing three back-to-back years of losses, the precious metal has rallied 20 percent in 2016. And that's just the start of the next leg higher, according to Marcelli. "$1,400 is very much in the cards this year." - CNBC