Gold’s Dramatic Drop Sets Stage for Rebound

The Financial Post reported that some hedge fund managers see last week’s plummet in gold prices as setting the stage for a rebound.

As quoted in the market report:

Official-sector purchases and demand in Asia will support bullion, Paulson & Co. said in a letter to clients, joining BlackRock Inc., the world’s biggest money manager, in predicting a rebound. Central-bank stimulus will “eventually lead to inflation,” the Paulson letter also said, reiterating a bullish outlook for bullion. The hedge fund is the biggest shareholder in the SPDR Gold Trust, the largest exchange-traded fund backed by the metal. The price plunge was a “panic event,” Catherine Raw, a fund manager in London at BlackRock, said last week.

To view the whole Financial Post report, click here.