Gold is sticking to a narrow trading range around USD1,200 an ounce even after holdings in bullion-backed exchange-traded funds plunged to their lowest in a year.
Bullion for immediate delivery slid 0.3 percent at $1,198.41 an ounce as of 2:03 p.m. in New York. In the last month, gold has traded within a range of about $31, with a high of $1,214.35 and low of $1,182.86.
The metal is “continuing its slow dance around $1,200,” Carlo Alberto De Casa, chief analyst at London-based brokerage ActivTrades, said in a daily note.
Earlier this month, hedge funds and other large speculators built up the biggest-ever net-short position in futures and options, according to U.S. Commodity Futures Trading Commission figures going back to 2006. The most recent data, for the week through Sept. 11, showed only a small reduction in net-bearish bets.
Gold has struggled to find traction for much of the year, with investors favoring the dollar as a haven asset. The dollar’s strength since late April in particular has held back any potential advances in the gold price despite potential triggers ranging from political uncertainty in Europe and the expanding global trade tensions. MDT/Bloomberg
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