Stocks in Europe improves on ECB rate cuts, meanwhile gold ETFs holdings makes the big drop down since August 2009.
According to Reuters on May 7th, gold reduced on Tuesday, as the request on gold was washed-out due to the increase in stocks market, on expectations that there will be a recovery in U.S. and the exchange traded fund dropped to the lowest through three years.
That pressure came after Britain and Japan came from their weekends and ready to evaluate the ECB rate cuts. The interest cuts usually inspire investors to head towards metals as gold. But at the moment, cyclical assets such as equities appear to be more promising.
Gold made a hard drop by 1.46% to reach $1,449.25 by 09:48 NY Time. Gold got affected strongly by the interest cut rates (ECB) and the Fed’s decision to stick with the stimulus program. June U.S. gold futures fell 0.5% to reach $1,460.40 an ounce.
Gold prices were affected by the buying pressure in Asia and other parts of the world, which led to a lack in gold bars, coins and nuggets in Hong Kong, Singapore and Tokyo. But gold was hard to recover due to the ETFs dip.
On Monday, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, dropped by 0.3% to reach 1,062.30 tons (34.15 million ounces).
Silver dropped by 1.4% to $23.65 an ounce. Palladium also fell 0.7% at $686.50 an ounce. Platinum as well dropped by 1.0% reaching $1,486.99 an ounce.