Bloomberg, (1/5) -- Gold fell, extending its
worst monthly loss in more than a year, as investors weighed a record drop in
exchange-traded product assets with speculation the Federal Reserve will
maintain unprecedented monetary stimulus.
Gold for immediate delivery slid 0.2 percent to $1,473.73 an ounce by 8:51 a.m. in Singapore. Bullion for June delivery rose 0.1 percent to $1,473.60 an ounce on the Comex in New York. Markets in China, Hong Kong, India, South Korea, Taiwan, Singapore, Malaysia, Thailand, Vietnam and the Philippines are closed today for holidays. While prices have rebounded 12 percent since touching a two-year low on April 16, they dropped 7.6 percent last month, the biggest loss since December 2011, as some investors lost faith in gold as a traditional store of value. Gold-backed ETPs plunged 174 metric tons last month, the biggest ever, according to data compiled by Bloomberg. The Fed, which is buying $85 billion of bonds a month in a third round of quantitative easing, concludes a two-day policy meeting today. “There won’t be any change in the Fed stance to QE,” said David Lennox, an analyst at Fat Prophets in Sydney. “Gold isn’t going to get any downward pressure from hawks coming out and saying ‘QE’s finished, let’s get on with cutting it back’.” ETP assets stood at 2,275.84 tons yesterday, the lowest since October 2011, according to Bloomberg data. SPDR Gold Trust holdings, the biggest gold-backed ETP, dropped to 1,078.54 tons, the lowest since September 2009. |
Written by: Kontak Perkasa Futures
PT.Kontak Perkasa Futures, Updated at: 8:52 AM
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