The precious Yellow metal™s 60-day historical volatility dropped to 12.2 last week, the lowest since April 2013, according to data compiled. Bullion futures traded in a range of about $20 this past week, compared to about $51 the week prior.
Gold™s open interest fell to a 5 yr low in April and the value of exchange-traded funds backed by bullion contracted by $2.6-B in May, the largest drop this year.
Gold™s appeal as a safe-haven diminished as US equities surged and tension between Ukraine and Russia eased. More than $1.1-T was added to the value of global stock markets last month.
Some investment housed are saying that Gold prices could fall to 1,150 by the end of the year. The recent narrow trading spread, coupled with declines in price swings, signal that Gold is poised to break out of its range to the Southside.
The 60-day volatility measure is at the lowest since 11 April 2013. In the next two sessions, prices tumbled 13% , entering a Bear market and capping the biggest fall since 1980. The annual decline in Y 2013 snapped 12 straight yrs of gainers.
Holdings in global ETPs backed by the metal are near the lowest since Y 2009. More than $73-B was erased from the value of the funds in Y 2013.
The Standard & Poor™s 500 Index of shares gained 0.46% to 1,949.44 Friday in New Yory.
Bullion climbed 70% from December 2008 to June 2011 as the Fed bought debt and held borrowing costs near Zero per cent.
Gold™s open interest, the aggregate number of futures contracts yet to be closed, liquidated or delivered, dropped to 362,838 on 4 April, the lowest since May 2009. Open interest was at 382,141 as of 3 June.
Source : livetradingnews.com