Paulson Keeps SPDR Gold as Druckenmiller, Templeton Buy Barrick – by Luzi-Ann Javier (Bloomberg News – May 15, 2017)

Gold and the companies that produce it were back in favor with fund managers last quarter, when the metal posted the best quarterly performance in a year.

Billionaire hedge-fund manager John Paulson maintained his position in SPDR Gold Shares, the world’s biggest exchange-traded product backed by the metal, a regulatory filing showed Monday. Stan Druckenmiller’s Duquesne Family Office LLC bought 2.85 million shares in Barrick Gold Corp., adding the company to its holdings in the period ended March 31, while Templeton Global Advisors Ltd. more than tripled its stake in the Toronto-based miner.

Investors poured $460 million into SPDR Gold in the first quarter, rebuilding their stake after the biggest redemption since June 2013. Investors returned to bullion and gold miners as they dialed back expectations of faster U.S. economic growth amid concerns about U.S. President Donald Trump’s ability to push his pro-growth policies through Congress.

In February, hedge-fund manager David Einhorn said he’s betting on declines in government debt and a rebound in gold to guard against the risk of inflation under Trump. Druckenmiller said in the same month that he bought gold in late December and January, reversing the sale he made after the U.S. presidential election.

Even on May 2, when the bullion rally was slowing, DoubleLine Capital LP Chief Executive Officer Jeffrey Gundlach said “it is not the time to give up on gold,” adding that prices are likely to head higher.

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