SPDR holdings drop 1 percent to lowest since early Nov

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 1 percent from a day earlier to 1,254.57 tonnes, the lowest since early November.

The ETF saw an outflow of more than 25 tonnes in the past two sessions, nearly half of its outflow so far this month.

“It’s the year-end redemption,” said Ong Yi Ling, an analyst at Phillip Futures. “Even though gold suffered sharp declines recently, the price is still up more than 10 percent this year, so some investors are cashing in the profit.”

Trading volumes were thin as many have closed positions ahead of the year end. Prices could move higher in the next month or two as investors return to the market after the year-end holidays.

“Some investors will start building positions as current prices are considered low, once we see a rebound in liquidity,” said a Shanghai-based silver trader.

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Posted by admin on Dec 23 2011. Filed under Gold ETFs. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry