The metal is on track to have its worst quarter since at least 1968, while quarter-end selling sprees by funds and widespread exits from gold ETFs have fuelled the decline, according to Reuters.
Its value has fallen 25% during the quarter, its biggest ever quarterly loss, and further falls today would make this its worst week since 1983.
While in the past falling prices have boosted demand for physical gold and provided some price stability, there has been no uptick in Asia, the biggest consumer of gold, as yet.
Reuters reported global consumers are waiting for prices to stabilise; Shanghai gold futures fell for the ninth consecutive session, dropping 4%, while in Hong Kong and Singapore premiums over London prices rose only slightly, to $4 and $3 respectively.
Tokyo premiums remained stable at $2/oz and there was only a marginal rise in India – the top consumer.
Holdings in State Street Global Advisors’ SPDR Gold Trust, the world’s largest gold-backed ETF, are near four year lows.
Come back later for further comment on the matter from State Street.
Gold fell to $1400/oz in April, find out what experts had to say about the situation at the time here.
