Investors await more stability in the price of gold before the return of the metal, which plunged its value this year, despite concerns about the economic recovery refined metal gloss over the longer term.
Hui gold $ 200 an ounce in less than two weeks in June to the lowest level in nearly three years at $ 1,180 an ounce. And was seen even larger decline in April in just two days – the biggest loss of the metal in 30 years.
The landing was followed in both cases bounces upward, which made up more than half of the losses of the metal in the first time and about $ 100 an ounce in the second time. But the failure of gold to add to those gains defections leave buyers in the case of worry.
And returned largely falling to institutional investors abandon the metal after hints of the Federal Reserve Ben Bernanke that may reduce the procedures of buying bonds of $ 85 billion per month, within the program of quantitative easing.
Calmed those hints in recent weeks. Monetary policy remains very motivational in the world, and remakes the dollar decline and remain concerns about a new outbreak of the euro zone debt crisis and about the pace of China’s growth.
And apparently this makes gold attractive, especially at the lowest price in almost three years. But cautious funds.
He said Remy Ojewole, director of shareholder Schroders Fund, “as far as gold temporarily crash …. Many of the investors lost confidence, and the level of volatility that we have seen, especially during April, I am afraid a lot of investors.”
“And approaching the $ 1,200 level, seems attractive metal began again, but we do not necessarily have to feel confident to buy at the moment. We are approaching the levels interesting, but we’re still waiting for some of the key points catalysts.”
The fund managers to sell off of index funds, which saw outflows of 579 tons this year, as a key factor that prevents them from returning to the gold. The property index funds backed by gold reached its lowest level in more than two years.
Bao said Morella Jenner, chief Msiwol the investment company London & Capital, “I would like to see stability in the pace of liquidation of ETF holdings of the metal.” “A week after the other, and we see outflows.”
