“Gold swung between gains and losses in London, heading for a second quarterly decline, as holdings in exchange-traded products fell by the most on record and investors weighed the euro-area’s debt crisis against prospects for a U.S. recovery.
Holdings in ETPs contracted 6.9 percent this quarter amid speculation that the U.S. Federal Reserve will rein in stimulus. The Dollar Index (DXY), a gauge against six major counterparts, rose 4.3 percent this quarter, the biggest gain since the three months ended September 2011, amid signs the U.S. economy is improving. Banks in Cyprus planned to open for six hours today with capital restrictions in place after shutting for almost two weeks as the nation faced financial collapse.
“The gold market is strongly polarized,” said Filip Petersson, a commodities strategist at SEB AB in Stockholm. “There is one large group that thinks things are heading in the right direction and that it is time to get out of gold, and one that thinks it is just going to get worse and you need gold as an insurance. The substantial ETF outflows are very worrying, though, a major bear trigger.”
Bullion for immediate delivery fell less than 0.1 percent to $1,603.88 an ounce by 10:14 a.m. in London after gaining as much as 0.2 percent and falling 0.1 percent. Gold for June delivery fell 0.2 percent to $1,604.20 an ounce on the Comex in New York….”Comments »