Gold fell after Dutch Finance Minister Jeroen Dijsselbloem discussed details for the European banking union project, adding to signs that the regions’s leaders will act to contain its fiscal crisis and eroding demand for haven assets.
Billionaire investors George Soros and Louis Moore Bacon cut their stakes in exchange-traded products backed by gold last quarter as futures dropped the most in more than eight years. John Paulson maintained his holding.
Gold is stuck in the longest slump in a decade as investors shun bullion for the dollar and bonds, just seven months after Bank of America Corp. said Europe’s debt crisis would send prices to a record $2,000 an ounce.
Billionaire investor George Soros increased his holdings in the SPDR Gold Trust in the first quarter while John Paulson maintained his stake, the fund’s largest, before bullion prices erased gains for the year.