Gold hit the lowest level since 2010 last week, and futures contracts in New York go for the biggest monthly loss the last two years. Prices are falling due to growing speculation that US interest rates will rise this year, reducing the appeal of bullion be loan credit insurance cause they do not pay interest as competing assets. At the same time, China bought a smaller portion of the metal than analysts expected and the dollar is appreciating.
"We are starting to see some real fear in the gold market for the first time," said Eric Crittenden, chief investment officer at Longboard Asset Management LLC, based in Phoenix, USA, which manages US $ 304 million. The fund maintains a posture sold gold since 2013 and increased those positions in March. "I will not be the least bit surprised if this decline become very significant and we get much lower prices."
Futures
Futures fell 4.1% last week on the Comex, to US $ 1,086 an ounce, having reached US $ 1,073.70, the lowest level since February 2010. The stock index MSCI All-Country World fell 2 1% last week, and Bloomberg Dollar Spot Index rose 0.1%, the fifth consecutive increase.
Speculators held net short positions to 11,345 contracts in the week ending July 21, according to data from the US Commodity Futures Trading Commission publi loan credit insurance shed three days later. The bearish bets rose 12% to 121,238.
The price decline was part of a broader decline in commodities, since everything fell, from oil to copper and sugar, signaling that inflation is likely to remain shy. The Bloomberg Commodity Index retreated 4.4% last week, reaching the lowest level in 13 years.
International assets traded funds guaranteed by the gold stock fell 1.1% last week, the biggest weekly decline since March. Possession is the smallest since 2009.
Written by Sergio
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