Fuda Fund plus gold to bet on the Fed's credibility crisis and the dollar's risk-averse position. Down Slide

On 24 August, a Fuda International portfolio manager stated that his fund gold holdout had doubled over the past three weeks and that the increased policy uncertainty of the Federal Reserve had been a catalyst for the operation. After raising the Fund ' s gold allocation to its own 5 per cent ceiling, George Efstatopoulos indicated that he would consider increasing the ceiling if the position of the United States dollar ' s hedge assets continued to decline. It is in this context that investors began to sell long-term national debt after the Fed’s July meeting, and it is in this context that George began to increase gold. “It is my understanding that this is due to the Fed’s lack of credibility and to increased policy uncertainty,” George said. He added that the unexpected increase in long-term bond buy-backs by the United States Department of the Treasury seemed more like “a manipulation of the rate of return than a solution to the underlying cause of the increase in the rate of return.” “The focus of gold today is no longer on the rise per se, but rather on why the rate of return will rise”