Gold loses lustre for third straight year

SINGAPORE: Gold’s image as a haven asset has taken a battering with the metal heading for its third straight annual loss amid the sale of gold-backed funds by investors.

Bullion for immediate delivery rose 0.2% to US$1,063.22 an ounce at 3:32 pm in Singapore after declining 0.7% on Wednesday, according to Bloomberg generic pricing.

It’s down 10% this year following a 1.4% drop in 2014 and a 28% loss in 2013.

Gold is in the longest slump since 2000 as the dollar surged on the back of monetary policy tightening in the United States, joining a collapse in prices of commodities from iron ore to oil.

Holdings in gold exchange-traded products have declined 10 times in the last 13 sessions to 1,466.45 tonnes, near the lowest in more than six years.

“Gold is suffering from the general exodus out of commodity investments,” Ole Hansen, head of commodity strategy at Saxo Bank A/S in Copenhagen, said by e-mail. “Being one of the most- traded commodities through ETF’s, the selling pressure from paper investors has been felt particularly hard and gold’s safe- haven status has suffered.”

Read more @thestar.com.my – Gold loses lustre for third straight year