After two months of treading water, gold prices are starting to sink.
Futures in New York reached a 15-week low today after investors sent U.S. equities to a record high. Assets in global exchange-traded funds backed by bullion are near the smallest since 2009, and money managers have cut their bets on a rally by a third since this year’s peak in March.
Gold’s slump is erasing gains from earlier this year, when increased tension between Ukraine and Russia and a winter slowdown for U.S. economic growth sent prices to their biggest first-quarter gain since 2008. Goldman Sachs Group Inc. and Societe Generale SA are predicting the metal will extend 2013’s 28 percent slump. Futures have tumbled 9.1 percent from this year’s high in mid-March.