The SPDR Gold Trust GLD, the world’s largest gold-backed exchange traded fund, said it sold more than 10 tons of bullion on Tuesday, or 1.7% of its total holdings of the precious metal.
SPDR now holds 631.2 tons of gold, down from 641.93 tons on Sept. 8. The trust has sold 68.7 tons of gold since its holdings hit a record 705.9 tons two months ago. Interest in gold ETFs -- securities backed by physical commodities -- has been a key support for bullion prices in recent years. A dip in investor confidence in the precious metal is likely to keep gold under pressure, traders say. “Unless we see a pick-up in investment demand, prices will struggle to gain traction,” said Barclays Capital analyst Suki Cooper.
Gold prices have fallen in recent weeks as interest in the precious metal has been dented by a recovery in the US dollar and a dip in oil prices. Spot gold was trading at $773.85/774.85 at 0903 GMT, down from $775.80/777.80 in late New York trade on Tuesday and some 25% lower than the all-time high of $1,030.80 it hit in March. (Reuters)