Gold Remains Below $1100 as Selling Pressure Continues

Gold hovered close to its weakest level since March 2010 early on Thursday, with no convincing recovery in sight after an early-week rout only spurred sellers to cut their exposure.

Holdings in the world’s biggest gold-backed exchange-traded fund, SPDR Gold Shares, fell further on Wednesday to the lowest level since 2008.  Spot gold was little changed at $1,094.33 an ounce by 0033 GMT, after sliding more than 1 percent to $1,086.89 on Wednesday.

Gold’s rout deepened after tumbling as much as 4 percent on Monday in a sell-off exacerbated by big trading volumes on the Shanghai Gold Exchange after investors dumped more than $500 million of bullion in New York in four seconds during early Asian trading hours.