During Wednesday trading the gold price dropped to its lowest level since November 2014. The price declined after the US Fed said they favour an interest rise during 2015.
The futures price declined $10 to as low as $1,141.90 per ounce following Janet Yellen’s latest comments. This is the lowest price since November 7th when the price briefly touched $1,135 per ounce.
Golds current price weakness is more to do with speculators trading on the Comex rather than physical demand from retail and institutional investors. Last week investors such as hedge funds cut their bullish positions by a massive 64%. According to the Commodity Future Trading Commission (CFTC) bets on a future price rise accounted for only 757,400 ounces.
Short positions i.e. bets that the gold price can be bought at a low price in the future rose to 306 tonnes an all-time high for the New York gold future market.
Gold is currently trading at £733.49 per ounce, silver £9.626 per ounce, platinum £647.70 per ounce and palladium £410.89 per ounce.