Gold Below $1220 Hurt by Outflows

Gold was stuck near January lows on Tuesday, hurt by outflows from the top bullion backed exchange-traded fund as investors adjust positions in anticipation of higher interest rates in the United States and further strength in the dollar.

Spot gold was little changed at $1,215.56 an ounce by 0032 GMT, not too far from a near nine-month low of $1,208.36 reached in the previous session.  Silver ticked up slightly to $17.75, though still close to a four-year low of $17.30 hit on Monday.

Investors pulled out of SPDR Gold Trust, the top gold-backed exchange-traded fund, for a second day in a row, with the fund’s holdings falling to 1.79 tons to 774.65 tons on Monday – its lowest since December 2008.

CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.