Under pressure: Gold sees worst slump since March 2009 in global markets

Gold today fell for a seventh day in the worst slump since March 2009 as exchange-traded product (ETP) holdings shrank.

Written by PTI | London | Published: May 18, 2013 3:29 am

Gold today fell for a seventh day in the worst slump since March 2009 as exchange-traded product (ETP) holdings shrank.

A strong dollar and a statement by a US Federal Reserve policy maker that stimulus may be reduced within months,further influenced trading in dollar-priced gold.

Gold fell 0.7 per cent to $1,376.69 an ounce,and is down 4.9 per cent this week.

Silver,which also fell 0.9 per cent to $22.48 an ounce,has registered a 5.8 per cent weekly slide.

Gold slid 18 per cent this year,falling into a bear market in mid-April,as some investors lost faith in the metal as a store of value and equities rallied on mounting confidence due to the improvement in the US economy.

The dollar traded near the highest level since July versus six major currencies as Federal Bank of San Francisco president John Williams said the central bank may begin to taper off monthly bond purchases as early as this summer. Gold ETP assets fell every week since February.

Holdings in exchange-traded products dropped 7.1 metric tonnes to 2,207.1 tonnes ,the lowest since July 2011. Assets slipped 16 per cent this year.

Filings showed Soros Fund Management and BlackRock were among funds that cut stakes in SPDR Gold Trust,the biggest gold ETP,in the first quarter.

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