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Ray Dalio Continues To Be A Strong Believer In Gold

Kitco News

(Kitco News) - The gold market continued to have some powerful allies even as the yellow metal struggled to find momentum in the third quarter.

The latest SEC filings showed billionaire investor Ray Dalio remained a stronger believer in gold in the third quarter as his hedge fund, Bridgewater Associates maintained its holdings in SPDR Gold Shares (NYSE: GLD), the largest bullion-backed ETF, at 3.908 million shares, and its position in iShares Gold Trust (NYSE: IAU), at 11.315 million shares.

Ray Dalio, founder of Bridgewater Associates
Institutional investment managers must file a Form 13F-HR, showing their major holdings, with the Securities and Exchange Commission within 45 days of the end of the quarter. The most recent filings show holdings of funds as of the end of the second quarter on June 30, but do not reflect any changes that might have occurred since.

The hedge fund stuck with its gold bet as prices dropped to a 1.5 year low in August, the zenith of what was a four-month selloff that saw prices fall nearly 13% from its April highs.

Dalio has been a firm believer in gold as a safe-haven asset for more than a year. He has often reiterated his call that investors should hold between 5% and 10% of their portfolio in gold since making the recommendation in a LinkedIn post in August 2017.

“If you don’t have 5-10% of your assets in gold as a hedge, we’d suggest that you relook at this. Don’t let traditional biases, rather than an excellent analysis, stand in the way of you doing this,” he said in the post last year.

Although gold has bounced off its third-quarter lows, the precious metal has struggled to maintain any bullish momentum as it continues to be dominated by the U.S. dollar.

Comex December gold futures continue to hold on to the critical psychological support above $1,200 an ounce, last trading at $1,203.70 an ounce, up 0.19% on the day; meanwhile the U.S. dollar index last traded at 97 points, nearly unchanged on the day.

Along with support at $1,200, many technical analysts are watching critical support at $1,190 an ounce as a break of this level could signal renewed downward momentum and gold prices could retest the August lows.

In other portfolio moves during the third quarter, Bridgewater increased its holdings in Barrick Gold Corp., Franco-Nevada Corp., Newmont Mining Corp. and Kinross Gold Corp. At the same time, the hedge fund reduced its stake in Yamana Gold Inc. and Eldorado Gold Corp.

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