Gold futures fell for the sixth day in a row to be the longest string since December 2011, in conjunction with the reduction of Soros possessing of precious metal products in index funds, and continued pressure on the euro by the dollar.
Investor George Soros joined to Northn Trust Corp. and BlackRock in reducing the possession of gold-backed ETF in the first quarter, while John Paulson kept his stake, which lost $ 165 million.
Fund cut Soros Management refuted the possessing in SPDR Gold Trust the largest gold-backed funds 12 percent to 530.9 thousand shares in the thirty-first of March, compared with the previous three months that ended in the thirty-first of December.
At a time when reduced funds managed Northn Trust Corp. BlackRock the retained possession when 21.8 million shares.
The reduction done by the ‘Soros’ for possession of gold in the first quarter came after a sharp cut by 55 percent in the last three months of last year.
It is well known that the famous billionaire Warren Buffett said in his annual address to shareholders of his company Berkshire Hathaway is the second of May to the need to avoid gold, where he said «that if they fell below $ 800 will not buy it.
13% decline
For his part, the World Gold Council said yesterday that demand for the precious metal fell 13 percent in the first quarter to its lowest level in nine years, as investors exceeded sales in its subsidized products in index funds buying boom in India and China.
The Council, which is headquartered in London, in a report issued Thursday that global demand for gold fell to 963 metric tons in the first quarter, compared with 1107.5 tonnes a year ago.
This figure is the lowest since the first quarter of 2010 when demand for the metal reached 658 metric tons.
And contributed to the record demand from China jewelry in raising the total consumption of the precious metal in the world’s second largest economy to exceed India, at which time it grew jewelery demand in the two countries 23 percent in the first quarter, while the central bank purchases fell.
It is well known that the precious metal prices continued to rise strongly during the 12-year-old sustained fell violently in the middle of last month when it fell by about $ 200 in two days to their lowest levels in two years.
Investors are directed towards the exit from their positions in gold to high-risk assets, especially equities, especially with the U.S. market to continue to achieve record highs.
Demand for jewelry
The report showed a rise in global demand for jewelry 12 percent to 551 tonnes, in conjunction with a jump in purchases by 19 percent to 184.8 tons in China, and by 15 percent in India to 159.5 tons, while consumption rose jewelry in the United States 6.2 percent to be the first quarterly increase since 2005.
The total consumer demand in China 20 percent to 294.3 tons, surpassing the consumption of India, which rose 27 percent to 256.5 tons.
The central banks added 109.2 metric tons in the three months to March, to be the ninth consecutive quarter of net buying those banks.
Gold fell for the Alsace consecutive day to be the longest string since December 2011, in conjunction with the reduction of Soros possession of precious metal products in index funds, and continued pressure on the euro by the dollar.
The precious metal contracts fell for June delivery in electronic trading on the New York Stock Exchange of $ 19.5 to $ 1376.7 after earlier fell more than 1.5 percent to $ 1373.7, which is the lowest in a month.
It is well known that the gold futures fell by about 18 percent this year, while reducing many investors possession of him, while the dollar rose more than 5 percent in the basket Amlath six which includes the yen and euro, while jumping the index «S & P» to the level of a new record the day before yesterday.
It is noteworthy that silver futures fell about 2 percent to 22.18 dollars, while platinum fell more than 1 percent to below the level of 1475 dollars.
