Gold prices seized strongly on Monday after speculations regarding the rate of the money printing by central banks whipsawed prices, while the dollar slipped with worries regarding the U.S were close to reining in measures to maintain the economy.
Gold‘s historical 60-day volatility marked its highest and biggest weekly percentage gain in a month last week in over a year.“Gold has so many drivers that it leads to a lot of getting pushed around by one thing or another,” said Dan Denbow, a fund manager at the $1 billion USAA Precious Metals & Minerals Fund in San Antonio. “It makes it impossible to determine a direction.”
SPDR Gold Trust, the world’s biggest bullion-backed exchange-traded fund, surged 73% this year and holdings dropped by 0.24 to 1016.16 tonnes on Friday.
According to the director for Cambridge Cameron Brandt, money managers withdrew $1.57bn from the gold funds in the week ended. The sum of outflows from commodity funds was $1.89bn, according reports from EPFR.
According to Nic Johnson, the current volatility in gold prices is just temporary and investors would still return to buy metals. Gold has been one of the least volatile commodities in the past five years. Crude Oil and natural gas had the most variations.
U.S gold rises to 0.25 percent to $1,390.00. The Central banks are predicted to buy up to 550 tons this year, according to the World Gold Council.
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