Will QE drive a new gold rush in second half?

George Soros and John Paulson are among the investors buying gold in anticipation of an uptick in price driven by more QE in developed economies this year.

Although gold hit a record high of more than $1,900 per ounce in the last 12 months, today it is trading 15% below this peak. So far this year the commodity has been stuck in a trading range of between $1,600 and $1,700, while gold mining equities have continued to post heavy falls. In the second quarter, the spot price fell almost 5%, which is the heaviest quarterly fall since September 2008, according to Bloomberg. The Q2 review of the market from the World Gold Council shows weakening demand in India and China contributed to a 23% decline in gold investment over the period. But, hi...