Gold Stuck In Limbo As ETP Holdings At Lowest Since April 2010
Saxo Bank | Nov 18, 2013 06:01AM ET
Gold held in exchange traded products were cut by seven metric tons to the lowest level since April 2010 last week while silver saw the second biggest weekly reduction since June. The reduction occurred despite soothing words about continued stimulus from Janet Yellen who is expected to take over the US Federal Reserve chair in January. A weaker dollar and lower bond yields were offset by the continued rally in equities which erodes the appetite for alternative investments such as gold and silver.
While the S&P500 has yielded a return approaching 30 percent, gold remains stuck in a downtrend which has lasted for more than one year now. Institutional investors, especially the leveraged types such as hedge funds have increasingly been growing impatient with golds prospect resulting in a doubling of the gross-short exposure through futures during the week ending November 12. Although the overall exposure through futures remain net-long, the technical picture looks non-supportive below 1,335 USD/oz given the downtrend from October 2012.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.