Gold dips as Asian demand weakens
Duncan Richardson, News Editor
31 Mar 2014, 11:18 a.m.
Gold dropped 2.5% last week to $1,295 per ounce as Chinese gold demand weakened and confidence in the U.S. economy grew. Hedge funds reduced their long exposure to gold and silver last week suggesting they believe gold’s recent rally is over. Over the last two weeks, gold has retreated 7% from its 2014 high of $1,392 per ounce.
The spot price of gold in China is close to its lowest level in 18 months relative to the international benchmark in London, indicating waning demand from the world’s largest consumer.
The value of the world’s largest Gold ETF, the SPDR Gold Trust, fell 1.9% last week. Furthermore, the share value of most of the major gold miners also dropped as a result of the weakening gold price.