Bearish gold investors are betting that the rout in the metal still has further room to fall, which has sent the assets of the biggest bullion-backed ETF, the SPDR Gold Trust ($GLD), to the lowest since the collapse of Lehman Brothers, Bloomberg reports.
Physical holdings of bullion held by the SPDR Gold Trust fell to 738.8 metric tons on Tuesday, which is the lowest since September 2008.
The fall in gold comes amid the plunge in oil prices, which fell into a bear market, and as the U.S. Federal Reserve ended its quantitative easing (QE) bond buying operation.
Over the years, gold prices surged for 12 consecutive years through 2012, and the prices spiked following the collapse of Lehman in 2008 and continued onward as global central banks increased monetary stimulus.
Gold is now poised for its first consecutive annual fall since 1998.
Source: Bloomberg
Discussion
Trackbacks/Pingbacks
Pingback: ABN Warns Gold Investors Not To Try And Catch Falling Knife, Sees Gold At $800 In 2015 | EMerging Equity - November 6, 2014