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Big Investors also Fear a Gold Slump

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Other giant investors

Another big name investors may want to watch is Stanley Druckenmiller. Druckenmiller is the former chair and president of Duquesne Capital, which he founded in 1981. He was looking forward to stronger economic growth and a rise in the interest rate in November 2016, so he exited gold.

However, during December’s end 2016 and January 2017, Druckenmiller once again became keen on gold, maybe due to the rising unrest following the election of President Donald Trump.

Soros Fund Management sold its 2.9 million shares in Barrick Gold (ABX) in 4Q16. The prices of mining shares were also on a downward trajectory during that time. 

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Market volatility (VIXY) (VXZ) has a substantial impact on gold, as its haven demand comes into the picture. Many investors pulled money out of gold in 4Q16, but later in the quarter, as uncertainty in the markets rose, investors started pouring money back in. Market volatility and gold have a good relationship with each other.

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