Gold, silver slump to fresh four-year lows as sell-off extends
Reuters: Gold slid for a fifth session in six on Wednesday, tumbling to fresh four-year lows as a strong dollar kept investors away from the safe-haven asset and physical demand failed to provide underlying support.
Silver tracked gold lower, hitting its lowest since early 2010, while platinum and palladium also fell.
Underscoring the lack of interest in bullion, holdings in SPDR Gold Trust, the top gold-backed exchange traded fund, slumped to a fresh six-year low.
Physical buying of jewellery, coins and bars - which usually picks up at lower prices - has not emerged robustly enough to put a floor under prices.
“There is very little on the horizon that is bullish. Despite the trillions of dollars of stimulus over the past several years, most central bankers are worried about deflation, not inflation,” said INTL FCStone analyst Edward Meir.
“In addition, the roaring US equity markets continue to siphon off assets away from alternative investments, including gold,” he said.