Gold Headed for Worst Week In a Month

Gold edged up on Friday as stock markets paused after rally, but the metal was still on track for its worst weekly decline in a month as investors cut exposure to bullion, sending holdings in exchange-traded funds to the lowest in four years.

Spot gold was up 0.17 percent to $1,388.11 an ounce by 0038 GMT, having fallen to a four-week low of $1,369.29 on Thursday as renewed liquidation in gold ETFs and the recent drop below the $1,400-per-ounce level spooked investors.

(Read More: Peter Schiff: Coming Japanese Crisis Will Spike Gold)

U.S. gold for June delivery was little changed at $1,386.70.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.55 percent to 1041.42 tonnes on Thursday – the lowest in four years.

Premiums for gold bars rallied to all-time highs in Hong Kong and Singapore on Thursday after bullion’s steepest drop since its April sell-off fueled another round of buying that constricted supply.

(Read More: Even Bargain Hunters Don’t Want to Buy Gold)

Gold investment nearly halved in the first quarter as a brighter view of the U.S. economy prompted investors in the West to favor other assets, but Chinese coin and bar demand hit a quarterly record of 109.5 tonnes, the World Gold Council said on Thursday.

Indian gold futures fell 1.5 percent on Thursday, extending losses for a second straight session, to hit their lowest level in nearly a month in line with global markets.

(Read More: Relax, India’s Massive Gold Imports Likely a One-Off)

The Shanghai Gold Exchange (SGE) will launch after-hours trading for Fridays on May 31 as part of its efforts to help its members better manage price risks, the bourse said in a statement on Thursday.

Advertisements

About abwehra group

The Art&Science of Trading Gold
This entry was posted in Uncategorized. Bookmark the permalink.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s