Gold Drops For The Third Day in a Row

Gold price is doing Harlem shake

Gold for a third day in New York ran below as the USD getting stronger, which possibly will mean more drops in exchange-traded products holdings.

According to data compiled by Bloomberg, on May 10, holdings in gold-backed ETPs fell 0.6% as the dollar stretched a five-week high against six main currencies. On Monday May 13, the USD Index moved up around 0.2% as the S&P’s GSCI gauge of 24 commodities dropped 0.6%.

On May 13, Dominic Schnider, head of commodity research at UBS AG’s wealth-management unit in Singapore, talks about the outlook for precious metals and crude oil. He speaks with Rishaad Salamat on Bloomberg Television’s “On the Move.”

Sun Yonggang, a macroeconomic strategist at Everbright Futures Co., a unit of one of China’s largest state-owned investment companies stated “Commodities in general have been hurt by the dollar’s recent strength,” “Investors are losing interest in gold.”

June gold delivery declined 0.6% to reach $1,428.10 an ounce by 6:11 a.m. on Comex in New York. Prices fell 1.9% last week, the first drop in three weeks.

Gold is having its worst start to a year since 1982 after falling 15% and entering a bear market in April. U.S. Commodity Futures Trading Commission data show, investors held 67,374 so-called short contracts on May 7, 6.4% more than a week earlier. The net long-term position fell 10% to reach 49,260 futures.